VANCOUVER, April 21, 2020 /CNW/ - RYU Apparel Inc. (TSXV: RYU, OTCQB: RYPPF) ("RYU" or the "Company") announces the appointment of Cesare Fazari as Chairman of the Board and CEO. As part of this reorganization, Marcello Leone has resigned as Executive Chairman and Director and Martino Ciambrelli has also resigned as Director of the Company.
"I would like to thank Mr. Leone and Mr. Ciambrelli on behalf of the Management team and Board for their contributions over the past five years," said Cesare Fazari. "Mr. Leone, as CEO of RYU, was instrumental in the creation and launch of the RYU brand and establishing RYU as an award winning Urban Athletic Apparel and accessories brand engineered for fitness, performance and lifestyle. RYU is widely recognized for fit, comfort and durability by both male and female consumers."
"In the weeks ahead I will be providing our shareholders and other stakeholders with a significant update on the strategic direction and financing efforts of the Company, I would also like to thank our shareholders and employees for their continued support."
RYU (Respect Your Universe) is a socially responsible apparel and accessories company focused on providing our customers with the highest quality athletic apparel and in the most environmentally and socially responsible manner possible. RYU's business model over the past five years has been a hybrid of physical retail storefronts and e-commerce. Under Mr. Fazari's leadership, RYU will evolve its business model to focus primarily on on-line sales in addition to key retail locations in major markets including Vancouver, Toronto, New York and Southern California. With a renewed focus on on-line sales, RYU will establish greater customer reach and accessibility while providing our customers with the highest quality apparel and accessories at the best value. The continued evolution of the business strategy into principally an on-line retailer is intended to significantly reduce the Company's fixed cost infrastructure and provide 24/7 access to our customers on a global basis.
Mr. Fazari is a significant investor in RYU. He has a long history of successful business activities in real estate, health care, biotechnology and financial technology, along with significant investments as a venture capital investor in numerous private and public emerging companies. Mr. Fazari is also active philanthropically with his time and as financial contributor to numerous charitable initiatives, including The Breakfast Club of Canada, Canadian Cancer Society, the Good Sheppard Food Bank and Artists for Peace and Justice (APJ).
In connection with the resignation of Mr. Leone, the Company has agreed to issue 8,000,000 common shares to Mr. Leone at a deemed price of $0.04 per share to address all remaining payment obligations under Mr. Leone's employment agreement. The proposed issuance is subject to approval by the TSX Venture Exchange and subject to shareholder approval at the Company's next annual general or special shareholders' meeting.
As part of the transition process, the Company has additionally agreed to settle all debts and liabilities owed to Mr. Leone and his associates and affiliates, the majority of which amounts were advanced in the 4th quarter of fiscal 2019 and the 1st quarter of fiscal 2020 to fund employee payroll expenses. Accordingly, the Company has entered into debt settlement agreements with three debt holders who are affiliates and/or associates of Mr. Leone to settle an aggregate of $1.845 million in consideration for the issuance of 46,137,449 common shares in the capital of the Company at a deemed price of $0.04 per share. The proposed issuance is subject to review and approval by the TSX Venture Exchange. All shares issuable under the proposed debt settlement agreements will be subject to a restricted period in accordance with securities laws and TSX Venture Exchange policies.
For regular updates on RYU Apparel visit: http://ryu.com
Respect Your Universe is an award winning urban athletic apparel and accessories brand engineered for fitness, performance and lifestyle. 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.
Cesare Fazari, Chief Executive Officer
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 regarding the proposed shares for debt transaction, Exchange and shareholder approval thereof, the transition of the business plan, and the proposed financing. There are n umerous 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) the inability of RYU to close the shares for debt transaction; or (iii) the Exchange or shareholders not approving the shares for debt transaction. 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.
SOURCE RYU Apparel Inc.
For further information: Anna Brazier, Investor Relations, 604-722-7917, [email protected], www.ryu.com