RYU Apparel Inc., the Vancouver-based athletic apparel brand, intends to conduct a non-brokered private placement financing of up to 333.3 million units at a price of Canadian 3 cents per unit to raise gross proceeds of a maximum of $10 million.
The offering may close in one or more tranches.
The company has terminated its prior financing previously announced on November 20, 2019. On the closing of the prior financing, the company issued a total of 45.3 million units for aggregate gross proceeds of approximately $1.36 million. All securities were subject to a restricted period of four months and one day.
Each unit consists of one common share of the company and one common share purchase warrant. Each warrant will entitle the holder to purchase one additional share at a price of C5 cents for a period of two years following the issuance of the warrants.
While there is no minimum offering, if the company raises at least $7 million under the private placement, the company will meet one of the conditions to the entering into of a definitive consulting agreement with a prominent retail consultant that is arm’s length to RYU. As reported, the consultant is expected to pursue a plan to bring RYU to profitability over the two-year period.
Photo courtesy RYU Apparel
