RYU Apparel Inc. entered into an agreement with Canaccord Genuity Corp. to join the Canaccord Genuity Opportunities for the Longer Term Program (COLTS).
The COLTS Program is a capital markets initiative that will profile high growth and small-cap companies, such as RYU. The strategic aim of RYU’s participation in the COLTS Program is to support RYU’s growth and broaden its exposure to investors, both retail and institutional.
Ongoing COLTS Program services will include:
- Assisting with RYU’s market communications strategy;
- Building RYU’s market profile domestically and offshore;
- Publishing company profiles on RYU under the Canaccord COLTS banner;
- Providing investment banking expertise and capital markets advisory services and
- Providing investor relations support, such as introductions to relevant institutional and strategic investors.
In connection with the COLTS Program, the company has agreed to issue Canaccord 22.8 million warrants to acquire common shares of the company in two tranches:
- 11,379,810 warrants with an exercise price of $0.25 per common share, exercisable for a period of 12 months from the date of the first COLTS publication; and
- 11,379,810 warrants with an exercise price of $0.30 per common share, exercisable for a period of 24 months from the date of the first COLTS publication.
This type of compensation has been established to align Canaccord with RYU’s growth trajectory and to incentivize Canaccord to assist in building the company’s profile.
“We are excited to partner with Canaccord on this longer-term initiative,” said Marcello Leone, CEO of RYU. “We are optimistic that the COLTS Program will benefit RYU by providing increased exposure of our story to a broader set of investors and successfully drive further stock performance as the company executes its business plan.”
The agreement with Canaccord and all matters contemplated as part of the COLTS Program are subject to the prior acceptance and approval of the TSX Venture Exchange.
