RYU Apparel Inc V.RYU.H

RYU Recap

[Riddler76]

As most of you know, I’m a fairly positive and patient RYU investor. Here however are my concerns on a trend that seems to be one step forward, two steps back; closing Sherway Gardens in Toronto to control costs was needed but certainly not a good look to open and close in a year’s time. Its February on Saturday and they still have not released the 2020 collection yet and continue to extend their 50% sale to clear out the 2019 inventory and receive much needed immediate cash flow. Elisabeth Rohm is working very hard to promote the brand on the street and through social media yet the followers on social media continue to drop. Finally we had a few days of hope with impressive volume and a sp increase, however the charts show the bids piling up between 0.02 – 0.025 again trying to pull it right back down. Now they are in a position to bring in a consultant, where on one hand it’s great that you have identified you need help, but let’s hope the expertise is absorbed and applied. The presentations to investors showed a plan of opening 5 new locations a year, how Melrose and San Diego were imminent and this will not turn to fruition. If you look at their presentation for 2017, 2018 and 2019 they are all vastly different and if you’re trying to generate more buy-in from investors it’s looks too inconsistent. On top of this, after the private placement sourcing expires on February 5^th, the possible plan is to do a 10-1 rollback and as we all know, reverse splits are often concerning. Again I want to reiterate, a brand full of potential but for each step forward, the additional step backwards is becoming a deep hole.