Grounded People Apparel Recieves $2.5 Million of Capital Injection From Vancouver-Based Right Season Investments Corp.
Grounded People Apparel Inc. has received a significant breakthrough investment from Vancouver-based Right Season Investments Corp. (formerly Roadman Investments Corp.). Within Grounded People's first year, the brand has emerged as a leader in sustainability and cruelty-free manufacturing, adopting a business model that's built on transparency and trust, and forging a reputation among consumers across the world that every step matters in helping preserve the planet. Grounded People's products, which have been featured in Forbes Magazine, Rolling Stone and Marie Claire, are almost entirely handmade from recycled materials in one of the world's only exclusively vegan factory located in Brazil.
The sustainable footwear market is strong and Grounded People is in a strategic position to capitalize with a dedicated consumer base that's shown high interest in integrating with the brand's mission to reverse the harmful environmental impact of the global fashion industry. According to a report by Allied Market Research, the global sustainable footwear market is projected to reach $13.3-billion by the end of the decade, nearly doubling the $7.7-billion market valuation in 2020. With the $2.5-million cash injection from Right Season, Grounded People will further strengthen its leadership position and work toward expanding its portfolio of product and distribution.
"It's incredibly humbling to have the support of the team at Right Season, especially given current capital market conditions and the challenges they bring," stated Maximilian Justus, the chief executive officer and co-founder of Grounded People. "Their trust and partnership are more than just votes of confidence, they're validation to our entire team that what we are doing matters and is important. Grounded People has come a long way since our founding in 2020 and this investment will enable us to grow our team further, expand our retail and on-line presence, target international markets, and continue building a robust product portfolio that simply and cost-effectively protects our customers and the planet on which we reside."
Right Season's investment in Grounded People comes just three months after the company's Oct. 5, 2022, listing on the Canadian Securities Exchange. The company's ability to raise such a significant amount of money in current, tough, capital market conditions is received as a vote of confidence by Right Season in Grounded People.
The $2.5-million investment by Right Season was completed by way of a non-brokered private placement of 4,464,286 units at a price of 56 cents per unit, with each unit comprising one common share of the company and one common share purchase warrant, with each warrant entitling the holder thereof to purchase one common share at a price of 70 cents for a period of 24 months from the date of issue. In connection with the investment, the company issued 44,643 common shares to a third party in consideration for administrative services rendered in support of the private placement.
All securities issued in connection with the investment are subject to a four-month-and-one-day statutory hold period in accordance with applicable securities law.
Prior to completion of the investment, Right Season held 347,222 common shares and 347,222 common share purchase warrants, representing approximately 1.86 per cent of the issued and outstanding common shares (or 694,444 common shares, representing approximately 3.65 per cent of the issued and outstanding common shares on a partially diluted basis, assuming exercise of all warrants held by Right Season).
Following completion of the investment, Right Season holds 4,811,508 common shares and 4,811,508 common share purchase warrants, representing approximately 20.73 per cent of the issued and outstanding common shares (or 9,623,016 common shares, representing approximately 34.34 per cent of the issued and outstanding common shares on a partially diluted basis, assuming exercise of all warrants held by Right Season).
Right Season has acquired the units for investment purposes. Right Season intends to evaluate these holdings and increase or decrease its investment in Grounded People as circumstances warrant.
This news release is being issued in accordance with National Instrument 62-103 (The Early Warning System and Related Take-Over Bid and Insider Reporting Issues) in connection with the filing of an early warning report. The early warning report respecting the acquisition will be filed on SEDAR under Grounded People's profile.
About Grounded People Apparel Inc.
Grounded People Apparel is a Vancouver, B.C., Canadian innovative apparel company focused on delivering high-quality products to its customers that are 100-per-cent-PETA-approved vegan. The company is primarily engaged in the business of fair trade, sustainable and Earth-conscious fashion. The company's initial products, which launched in the fourth quarter of 2021, are its high-top and low-cut canvas sneakers, which are made from sustainable, ethically sourced and produced materials, and are manufactured by fair trade workers, in a 100-per-cent-vegan manufacturing facility which is located in Brazil.