VANCOUVER, Jan. 29, 2020 /CNW/ - RYU Apparel Inc. (TSXV:
RYU, OTCQB: RYPPF) ("RYU" or the
"Company"), creator of urban athletic apparel, is
pleased to announce it has entered into a letter of engagement for
a proposed consulting agreement with a prominent retail consultant
(the "Consultant") that is arm's length to RYU. The
Consultant, a Canadian leading contributor to the fashion and
design industry and best-known for creating a succession of
international visionary brands and retail concepts, will be
retained to help RYU build and develop a strategic plan targeted
for the North American market.
The definitive terms for the engagement have not yet been
finalized and the entering into of that agreement is subject to
certain conditions, including the approval of the TSX Venture
Exchange (the "TSXV"). The principal condition to be
satisfied, before the definitive consulting agreement can be
executed, is RYU raising $7M in
capital, in order to fund most of the activities to be undertaken
under the consulting arrangement.
Upon entry into a definitive agreement, the Consultant will be
retained to create, implement and execute a strategic plan to lead
a formative transition of RYU to profitability over the two-year
terms of the proposed agreement.
"Our focus is on the brand and its uninterrupted growth. The
strategic services to be provided by the Consultant are focused on
constant innovation and improvement, as it has always been, since
the day we opened our first store," said Marcello Leone, CEO of RYU. "These partners have
a successful track record in North-America, and, if the arrangement is
consummated, RYU anticipates the arrangement will represent a
significant opportunity for brand awareness, while keeping
innovation, customer experience and the quality of our products as
the center of our Universe".
The letter of engagement provides that, following entry into
definitive agreements, the Consultant will receive, in addition to
a work fee, 50M stock options with an
exercise price of $0.05 per share for
a five-year term and, within 12 months of entering into definitive
agreements, 30M restricted share
units. The stock option grant and RSU issuance will be subject
to shareholder approval if the aggregate number of options and RSUs
granted to the Consultant exceeds 5% of the issued shares of RYU at
the time of grant.
For regular updates on RYU Apparel visit: http://ryu.com
About RYU
Respect Your Universe is an award winning urban athletic
apparel and accessories brand engineered for the fitness,
performance and lifestyle of the athletic man and woman. Designed
without compromise for fit, comfort, and durability, 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
Tel: 604-235-2880
Neither the TSX Venture Exchange Inc. nor its Regulation
Service Provider (as that term is defined in the policies of the
TSX Venture Exchange Inc.) accepts responsibility for the adequacy
or accuracy of this press release.
This news release contains forward-looking information that
involves various risks and uncertainties regarding future events.
Such forward-looking information can include without limitation
statements based on current expectations involving a number of
risks and uncertainties and are not guarantees of future
performance of RYU, such as statements that: definitive agreements
may be entered into; RYU will successfully raise financing proceeds
of at least $7M; RYU will satisfy the
conditions necessary to enter into definitive agreements; the aims
of the consulting arrangement will materialize, including the
intention to transition RYU to profitability within a two year
period, to build and develop a strategic plan and to lead a
formative transition of RYU; the arrangement will represent a
significant opportunity for brand awareness; and RYU will obtain
any required shareholder and TSXV approvals for the proposed stock
option grant and RSU issuance. There are numerous risks and
uncertainties that could cause actual results and RYU's plans and
objectives to differ materially from those expressed in the
forward-looking information, including: (i) adverse market
conditions resulting in the inability of RYU to raise necessary
financing required to enter into and make payments under the
proposed definitive agreements; (ii) the inability of RYU to obtain
any necessary approvals in respect of the proposed agreements,
including approvals necessary for the issuance of the RSUs
and the grant of stock options; and (iii) inability to restructure
and transform its business as required. Actual results and future
events could differ materially from those anticipated in such
information. These and all subsequent written and oral
forward-looking statements are based on estimates and opinions of
management on the dates they are made and are expressly qualified
in their entirety by this notice. Except as required by law, RYU
does not intend to update these forward-looking
statements.
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SOURCE RYU Apparel Inc.