TUT Fitness Group has entered into a transaction agreement with AAJ Capital 2 Corp.
As part of the arrangement, AAJ2 will acquire all of the issued and outstanding securities of the TUT Fitness Group, the British Columbia-based maker of connected home gyms, and has closed $3 million subscription receipt financing. The Transaction and the Subscription Receipt Financing were initially announced in AAJ2’s news release dated December 7, 2020, indicating AAJ2 and TUT had entered into a letter of intent with respect to the Transaction.
The Transaction is subject to a number of terms and conditions as set forth in the Definitive Agreements, including (among other things) the approval of the TSX Venture Exchange. Upon completion of the Transaction, TUT and 119BC will become wholly-owned subsidiaries of the company and AAJ2 will change its name to “TUT Fitness Group Ltd.” AAJ2 has applied to the exchange to reserve GYM as the new ticker symbol.
“We are extremely pleased with the completion of our capital raising objectives and the signing of the definitive agreements. The importance of health and wellness in our lives cannot be overstated and TUT Fitness is strategically positioned to become a market leader in providing affordable fitness solutions through its unique patents, manufacturing relationships, and experienced management,” said Praveen Varshney, director of AAJ2.
Robert Smith, President of TUT commented: “This is an important time for our business, and we are very appreciative of the investor support we have received to date. We are creating a whole new category of fitness with our patented stackable resistance band TUT Plates that can replace bulky gym equipment and traditional metal weights. By offering more value, higher performance and convenience in one solution, with over 250 exercises, consumers will not have to feel forced to pay more for multiple pieces of equipment that may not meet all their needs.”
Photo courtesy TUT Fitness Group