VANCOUVER, Jan. 23, 2019 /CNW/ - RYU Apparel Inc. (TSXV:
RYU, OTCQB: RYPPF) ("RYU" or the
"Company"), creator of urban athletic apparel, is
pleased to announce that it proposes a non-brokered private
placement offering (the "Offering") to raise up to
$6,000,000 by the issuance of up to
80,000,000 units (each, a "Unit") at a price of $0.10 per Unit less the maximum discount of 25%
permitted under TSXV policies in one or more tranches.
The Company has received several calls from investors inquiring
as to whether a stock consolidation is being proposed by the
Company at this time. In response, management would like to
advise the market that a stock consolidation is currently not being
considered by the Company.
Each Unit of the Offering will be comprised of one common share
in the capital of the Company (each, a "Common Share") and
one transferable common share purchase warrant (each, a
"Warrant") being exercisable into one Common Share at a
price of $0.15 per share for a period
of three (3) years from closing, subject to an acceleration
provision of the Company whereby, in the event the Company's common
shares have a closing price on the TSX Venture Exchange (the
"Exchange") (or such other exchange on which the shares may
be traded at such time) of greater than $0.30 per share for a period of 5 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 via news release to the holders thereof
and, in such case, the warrants will expire on the 30th day after
the date on which the news release is disseminated by the
Company.
There is no minimum aggregate proceeds amount that is required
to close the Offering. Management anticipates that the
Company will allocate the proceeds of the Offering as follows: 15%
for expansion of new stores, 35% for inventory, 22% for manpower,
11% for brick and mortar rent, and 17% for general working capital
purposes.
The Offering will be conducted under available exemptions from
the prospectus requirements of applicable securities legislation
and participation in the Offering will be available to existing
shareholders in qualifying jurisdictions in Canada in accordance with the provisions of
Multilateral CSA Notice 45-313 and BC Instrument 45-354 (the
"Existing Shareholder Exemption"). The Company has set
January 22, 2019 as the record date
for the purpose of determining shareholders entitled to participate
in the Offering in reliance on the Existing Shareholder
Exemption. Qualifying shareholders who wish to participate in
the Offering should contact the Company at the contact information
set forth below. If the Offering is over-subscribed for,
units will be allocated pro-rata amongst all subscribers. In
addition to conducting the Offering pursuant to the Existing
Shareholder Exemption, the Offering will also be conducted pursuant
to other available prospectus exemptions. Insiders may
participate in the Offering.
In addition to the Existing Security Holder Exemption and other
available prospectus exemptions, a portion or all of the offering
may be completed pursuant to Multilateral CSA Notice 45-318 –
Prospectus Exemption for Certain Distributions through an
Investment Dealer ("CSA 45-318") and the corresponding
blanket orders and rules implementing CSA 45- 318 in the
participating jurisdictions in respect thereof (collectively with
CSA 45-318, the "Investment Dealer Exemption"). As at the
date hereof, the Investment Dealer Exemption is available in each
of Alberta, British Columbia, Saskatchewan, Manitoba and New
Brunswick. Pursuant to CSA 45-318, each subscriber relying
on the Investment Dealer Exemption must obtain advice regarding the
suitability of the investment from a registered investment dealer.
There is no material fact or material change of the Company that
has not been generally disclosed.
All securities issued pursuant to the Offering will be subject
to a statutory hold period expiring four months and one day after
closing of the Offering. Completion of the Offering is subject to a
number of conditions, including, without limitation, receipt of all
regulatory approvals, including approval of the Exchange.
None of the securities issued in the Offering 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 press release shall not
constitute an offer to sell or a solicitation of an offer to buy
nor shall there be 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
Respect Your Universe is an award
winning urban athletic apparel and accessories brand engineered for
the fitness, performance and lifestyle of athletically minded men
and women. Innovatively designed without compromise and tailored
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, President and Chairman of the Board
Tel: 604-235-2880
This press 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 RYU intends to
undertake and close the Offering, the use of proceeds thereof, and
whether the Company may conduct a stock consolidation. 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; (ii) risks inherent in the apparel
industry in general; (iii) the inability of RYU to complete the
Offering; or (iv) the Exchange not approving the Offering. Actual
results and future events could differ materially from those
anticipated in such information. These and all subsequent written
and oral forward-looking information 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.
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.
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SOURCE RYU Apparel Inc.