Late last night RYU (RYU.V) released its Q1 2016 financials on SEDAR followed up by a press release this morning announcing the oversubscribed closure of its most recent private placement. The financials were significant because Q1 2016 represented the first quarter of the "new" RYU in which sales consisted of no old and existing RYU products but rather new products that the RYU team put together by Marcello Leone designed. Therefore, while the revenues were a bit lower than Q4 2016, this shouldn't be seen as a sign of weakness because Q4 numbers consisted of marked down "old RYU" inventory that the company needed to quickly turn, as explained in the "revenue" note below.
While comparing quarter over quarter numbers for RYU is not comparing apples to apples for the reason listed above, here is a brief snapshot of Q1.
Q1 2016 Snapshot
What really captured my attention from the MD&A was the following note buried within the document:
The company followed this up with a press release this morning specific to this significant capital raise. Total capital raised via this Private Placement was over $2.7M! This is significant, and while the company did not disclose who participated in this capital raise, I suspect that a significant fund or two may be dipping their 'toe in the water' in order to get in early with what seemingly appears to be the 'new kid on the block' that quickly is turning heads and showing early success.
All in all, these events are very positive for RYU and I expect momentum to pickup and shares to begin to finally rise as investors realize, and the company proves, this is more than a "story".