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
About RYU
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"
Cesare Fazari,
Chief Executive Officer
Tel: 1-844-535-2880
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 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.