Ryu Apparel Inc. closed the second tranche of the private placement, which consisted of 11.46 million units at a price of 12.5 cents per unit, for gross proceeds of $1,432,296.
Each unit consists of one common share and one share purchase warrant. Each whole warrant entitles the holder to purchase one additional share at a price of 20 cents per share for a period of two years from the closing of the financing, subject to an acceleration provision whereby, in the event that the company’s common shares have a closing price on the TSX Venture Exchange of greater than 25 cents per share for a period of 20 consecutive trading days at any time after four months and one day from the closing date, the company may accelerate the expiry date of the warrants by giving notice to the holders thereof and, in such case, the warrants will expire on the 30th day after the date on which such notice is given to the holders.
On September 1, 2016, the company announced the $2 million private placement of units at a price of 12.5 cents per unit, and the closing of the first tranche totaling 7.51 million units for gross proceeds of $938,926. In total, the company issued an aggregate of 18.97 million units for gross proceeds of $2.37 million with respect to the financing.
