RYU Apparel Inc. announced a non-brokered private placement of convertible debentures for gross proceeds of CAD 10,000,000 on March 23, 2021. The transaction may include participation from One or more insiders of the company. The debenture carries a coupon 7% per annum and would mature in three years from the date of closing. The debenture is convertible into common share of the company at an exercise price of CAD 0.35 per share, at any time prior to the maturity Date, subject to adjustment as well as an accelerated conversion right whereby if, for any 15 consecutive trading day period after the date of issuance, the volume weighted average trading price for the Shares on the TSX Venture Exchange equals or exceeds CAD 0.70, then, at any time thereafter, the company shall be entitled to automatically convert any outstanding principal amount and accrued, but unpaid interest thereon into Shares at the Conversion Price upon giving the Agent (as defined below) notice and, in such case, the conversion of the Outstanding Amount will occur on the 15th day after the date of delivery of such notice. Repayment by the company of amounts owing under the debentures is secured by a charge over all of the assets of the company. Closing of the offering remains subject to the acceptance of the TSXV. The Debentures and the Shares issuable upon conversion of the Debentures will be subject to a statutory hold period expiring on the date that is four months and one day after closing.