RYU Apparel Inc. raised $3.8 million from the private placement sale of 30.3 million units.

Each unit was sold at a price of 12.5 cents on November 23, 2016. Each Unit consists of one common share and one share purchase warrant. Each 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.

The warrant is subject to an acceleration provision. 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.

The company paid cash finder’s fees of $78,178 and issued 202,500 common shares and 402,920 share purchase warrants to certain finders in connection with the financing. The finder’s warrants have the same terms and conditions as the warrants.

The company also announced that on November 15, 2016, it granted 150,000 stock options to a consultant of the company for the purchase of 150,000 common shares of the Company pursuant to its Stock Option Plan. Each option is exercisable for a period of five (5) years at a price of 20 cents per common share.