RYU Apparel Inc., the maker of fitness apparel, closed the second tranche of the previously announced $1.7 million private placement.
The closing of the second tranche consisted of 11,934,821 units at a price of $0.20 per unit for gross proceeds of approximately $2.4 million. The proceeds, when combined with the previously announced first tranche of 1,595,850 Units for proceeds of $319,170 that closed on April 13, 2016, result in a total of 13,530,671 units for aggregate gross proceeds of approximately $2.7 million. Each unit consists of one common share and one warrant, which entitles the holder to purchase one additional share at a price of $0.50 per Share for a period of three years.
In connection with the closing of the second tranche of the financing, the company paid cash finder’s fees of $49,100, issued 600,000 common shares and issued 220,500 share purchase warrants on the same terms of the warrants issued in the financing.
All securities issued pursuant to the financing, including those issued to finders, are subject to a statutory hold period expiring four months and one day after May 30, 2016.
