RYU Provides Corporate Update on Key Milestone Achievements
VANCOUVER, BC, March 9, 2021 /PRNewswire/ - RYU Apparel Inc. (TSXV: RYU) (OTCQB: RYPPF) (FWB: RYAA) ("RYU" or the "Company"), creator of urban athletic apparel, is pleased to announce four key updates.
RYU Apparel Stores Reopening in April 2021
A key step in RYU's omni-channel strategy and corporate re-set is the reopening the Company's flagship stores that have been closed due to the global COVID-19 pandemic. The reopening of the Company's Vancouver and Toronto stores is scheduled for Saturday, April 16, 2021.
Known for its interactive experiences, customer service, and community events, RYU's stores have always been a cornerstone to the Company's brand and culture. Once re-opened, customers will be able to once again enjoy bespoke shopping experiences that include:
- Personalized product education for every customer to ensure the products they are being outfitted with will best meet their performance needs
- Exclusive, limited seasonal products
- In stock, best-selling "hero items"
- Health and wellness focused special events
- Enhanced measures to ensure health and safety of our customers
RYU Apparel Expands in Europe and the UK
RYU continues its rapid expansion across channels, driven by recent operational changes, including a streamlined supply chain and the move to the Shopify ecommerce platform.
The first regions outside North America that RYU is expanding into are the fast-growing markets of Europe and the UK.
According to market research, revenues in the sports apparel market are estimated to reach around US $208 billion by 20251 with US $2.3 billion of projected demand being added from Germany and US $1.9 billion from the rest of Europe2. This sector growth coincides with a pandemic-driven spike in ecommerce that is projected to continue3.
This expansion comes at a decisive moment in RYU's growth plan as the Company globalizes its exposure through its sponsorship of Canada's skateboard Olympic team. Other partners of the team include global brands such as 7-Eleven, Red Bull, and Swatch.
"We are delighted to open our incredible line-up of products to customers in Europe and the UK through our ecommerce store," said RYU CEO Cesare Fazari. "Europe is a growing market for sports apparel and our expansion into the market is another key strategic milestone achieved in our global-omni channel strategy."
Customers in Europe will enjoy the very same shopping experience and customer service on RYU.com while having slightly longer delivery times and standard VAT or local taxes.
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RYU Apparel Secures $1 Million Inventory Loan
On March 8th the Company entered into a loan agreement (the "Loan Agreement") with Aladdin Ventures Inc. (the "Lender"), pursuant to which the Lender has agreed to loan to RYU the principal amount of $1 million (the "Loan"). The term of the loan is 12 months from the date that the Loan is advanced by the Lender to RYU (the "Maturity Date") and the principal balance of the Loan and any interest owed is payable in full on the Maturity Date. The Loan is subject to a 2% fee, which shall be deducted directly from the principal amount of the Loan. Interest on the Loan will be 8% per annum of simple interest and is to be paid quarterly.
The Company intends to use the loan primarily for inventory purchases for replenishment of top-selling styles, Fall 2020, and Spring 2021 collections. In addition, funds will be allocated to general working capital to accelerate growth through current and future marketing and sales initiatives, including continued wholesale roll out across Canada, Mexico, and the United States, the re-opening of flagship stores, as well as bolstering the Company's ecommerce business.
An existing shareholder of the Company has agreed to provide a personal guarantee to secure repayment of the Loan. In consideration for providing the personal guarantee by way of a share pledge agreement, RYU has agreed to issue the guarantor, as a bonus, an aggregate of 1,333,333 common shares (the "Loan Bonus Shares") of the Company. The Loan and the issuance of the Loan Bonus Shares are subject to the approval of the TSX Venture Exchange.
The Loan Bonus Shares will be subject to a four-month plus one-day hold period in accordance with applicable securities laws.
COO Rob Blair Option Granted Stock Options and Restricted Share Units
Recently appointed Chief Operational Office (COO) Mr. Blair has brought nearly two decades of experience building high-growth iconic apparel and sportswear brands to the RYU team. As an industry expert in design, merchandizing and corporate brand strategy, Mr. Blair has worked with iconic athletic apparel brands Red Bull, lululemon, Gap Body and Nike. Mr. Blair is preparing to unveil a "digitally first" strategic plan, integrating the customer experience across channel, as well as expanding the key markets in North America and around the world to accelerate growth in the company.
Per his employment agreement Mr. Blair will have the option to purchase 2,000,000 common shares of the Company (the "Options") which will vest immediately following grant of the Options and expire on the date which is three (3) years from the Start Date; and 3,000,000 restricted shares units (the "RSUs"), which will vest over three years as follows:
a. 1,000,000 RSUs will vest on the date which is one year from the Start Date;
b. 1,000,000 RSUs will vest on the date which is two years from the Start Date; and
c. 1,000,000 RSUs will vest on the date which is three years from the Start Date.
About RYU Apparel
RYU Apparel (TSXV: RYU, OTCQB: RYPPF), or Respect Your Universe, is an award winning urban athletic apparel and accessories brand engineered for the fitness, performance for those living active lives. Designed without compromise for fit, comfort, and durability, RYU exists to facilitate optimal human performance. For more information, please visit the RYU website at: http://ryu.com
RYU APPAREL INC.
"Cesare Fazari"
Cesare Fazari, CEO
Tel: 1–844–535–2880
This news release contains forward-looking information that involve 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 the Company, such as the statement regarding the intended use of funds from the Loan. There are numerous risks and uncertainties that could cause actual results and the Company's plans and objectives to differ materially from those expressed in the forward-looking information, including the failure of the Company to obtain the necessary approval for the Loan and grant of Loan Bonus Shares, failure of the Company to repay the Loan and any other factors that may cause the Loan not to be repaid, the ability of the management team to execute on its business plan, risks in the apparel industry in general, and COVID-19 related risks. 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, the Company does not intend to update these forward-looking statements.
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.
SOURCE RYU Apparel Inc.
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