Total $2M
Financing Oversubscribed at $2.37
Million
VANCOUVER, Oct. 4, 2016 /CNW/ - RYU Apparel Inc. (TSX
VENTURE: RYU & Frankfurt Stock Exchange: RYA), a global,
tailored urban athletic apparel and accessories brand engineered
for the fitness, training and performance of the multi-discipline
athlete, is pleased to announce that, further to its news release
dated September 1st and 12th, it has
closed the second tranche of the private placement, which consisted
of 11,458,368 units (each, a "Unit") at a price of
$0.125 per Unit for gross proceeds of
$1,432,296. Each Unit consists of one
common share and one share purchase warrant (each, a
"Warrant"). Each whole Warrant entitles the holder to
purchase one additional share at a price of $0.20 per share for a period of two years from
the closing of the financing, subject to an acceleration provision
whereby, in the event that the Company's common shares have a
closing price on the TSX Venture Exchange of greater than
$0.25 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.
On September 1, 2016, the Company
announced the $2 million private
placement of Units at a price of $0.125 per Unit, and the closing of the first
tranche totaling 7,511,408 Units for gross proceeds of $938,926. In total, the Company issued an
aggregate of 18,969,776 Units for gross proceeds of $2,371,222 with respect to the financing.
For the second tranche, the Company paid cash finder's fees of
$74,912.20 and issued 303,209 common
shares and 291,088 share purchase warrants to certain finders in
connection with the financing. The finder's warrants have the same
terms and conditions as the Warrants.
All securities issued in the second tranche of the financing are
subject to a statutory hold period expiring four months and one day
after October 3, 2016.
Insiders of the Company subscribed for a total of 386,832 Units
under the financing, which is a "related party transaction" within
the meaning of Multilateral Instrument 61-101 Protection of
Minority Security Holders in Special Transactions ("MI
61-101"). The issuance to the insiders is exempt from the
valuation requirement of MI 61-101 by virtue of the exemption
contained in section 5.5(b) as the Company's shares are not listed
on a specified market and from the minority shareholder approval
requirements of MI 61-101 by virtue of the exemption contained in
section 5.7(a) of MI 61-101 in that the fair market value of the
consideration of the shares issued to the related parties did not
exceed 25% of the Company's market capitalization.
None of the securities issued in connection with the financing
will be registered under the United States Securities Act of
1933, as amended (the "1933 Act"), and none of them may
be offered or sold in the United
States absent registration or an applicable exemption from
the registration requirements of the 1933 Act. This news release
shall not constitute an offer to sell or a solicitation of an offer
to buy nor shall there by any sale of the securities in any state
where such offer, solicitation, or sale would be unlawful.
For regular updates on RYU Apparel visit: http://ryu.com
About RYU
RYU Apparel Inc. is a global, tailored urban
athletic apparel and accessories brand engineered for the fitness,
training and performance of the multi-discipline athlete. Designed
without compromise, RYU exists to facilitate human performance. For
more information, visit: http://ryu.com
On Behalf of the Board
RYU APPAREL INC.
"Marcello
Leone"
Marcello Leone,
CEO, President and Chairman of the Board
Tel: 604-235-2880
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this release.
SOURCE RYU Apparel Inc.