Investment Demonstrates Confidence in Management Team and Direction; Vancouver Flagship Store Expected to Open in November
VANCOUVER, BC / ACCESSWIRE / October 26, 2015 / RYU Apparel Inc. (TSX VENTURE: RYU) (OTC: RYPPF) ("RYU"), a global, athletic tech-style apparel brand engineered for the fitness, training and performance of the multi-discipline athlete, is pleased to announce that, further to its news release dated October 19, 2015, the Leone family has increased their equity stake in RYU with an investment of CA$1,500,000 at CA$0.25 per unit (each, a "Unit") for a total of 6,000,000 Units. Each Unit consists of one common share (a "Share") and one warrant, which entitles the holder to purchase one additional Share at a price of CA$0.50 per Share for a period of three years.
The Leone family, including Marcello and Patrizia Leone, is recognized as one of the top retail apparel families in North America. Marcelo Leone contributed CA$1,000,000 and Patrizia Leone contributed CA$500,000. Of the gross proceeds, CA$1,000,000 was previously advanced to RYU and has been deployed in the operation of the business, CA$300,000 was used to repay debt and CA$200,000 is intended to be used for general working capital purposes.
Recently, the Leone family sold their retail apparel empire after 29 years and are now focusing their investment and time into RYU. Known for having a great eye for trends in retail and fashion, the Leone family believes in the new direction of RYU and have significantly increased their equity stake. This increased investment demonstrates their confidence that the RYU management team led by Mr. Marcello Leone will create a successful brand in the athletic apparel space.
All securities issued pursuant to the financing are subject to a statutory hold period expiring four months and one day after closing of the financing. The participation by insiders in the offering is a related party transaction under Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions ("MI 61-101") but it is exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 as neither the fair market value of the subject matter of the transaction nor the consideration paid exceed 25% of RYU's market capitalization.
For regular updates on RYU Apparel visit: https://www.facebook.com/RYUapparel.
About RYU
RYU Apparel Inc. is a global, athletic tech-style apparel 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 www.ryu.com.
On Behalf of the Board
RYU APPAREL, INC.
Marcello Leone, CEO, President and Chairman of the Board
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.
Investor Relations
RYU Apparel Inc.
Investor Relations
Contact: Anna Brazier
+1 877 367 0704
investors@ryu.com
www.ryu.com
Statements regarding the future growth of RYU are "forward-looking statements," which are subject to risks and uncertainties, which may cause the actual results, performance or achievements of RYU to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such statements include the intended use of proceeds from the financing and the belief that the RYU management team will create a successful brand in the athletic apparel space. These risks and uncertainties include, among others, that RYU's business plan is dependent on additional financing, which it may be unable to obtain on terms acceptable to RYU, changes in general economic or market conditions that could impact consumer demand for RYU's products, and RYU's ability to execute on its business plan. The material assumptions supporting these forward-looking statements include, among other things: RYU's ability to obtain any necessary financing on acceptable terms; timing and amount of capital expenditures; the enforcement of its intellectual property rights; continuation of current tax and regulatory regimes; and general economic and financial market conditions. Except as required by law, RYU undertakes no responsibility to update any of the forward-looking statements contained in this news release.
SOURCE: RYU Apparel Inc.
