News Release – Vancouver, British Columbia – December 30, 2020: AAJ Capital 2 Corp. (TSX-V:AAJ.P) (“AAJ” or the “Company”) is pleased to announce that TUT Fitness Group Limited (“TUT“) has recently received a third container of inventory to fulfill outstanding customer orders, as it works to increase production for 2021.
TUT has signed a manufacturing agreement with New Creation Works (NCW), a leading Hong Kong-based consumer products manufacturer. NCW’s CEO, Bill Tang, commented on the agreement saying that “We are very excited about our new partnership with TUT Fitness and have already begun expanding our operations and production capabilities to accommodate TUT Fitness’ expected future growth.” TUT also placed an additional purchase order with NCW on December 2, 2020 for 2,000 additional units of the TUT TrainerTM & Rower, plus accessories for delivery in the New Year.
Financial Advisory – Canaccord Genuity Corp.
AAJ also wishes to announce that TUT has entered into a Financial Advisory Agreement with Canaccord Genuity Corp. to support TUT’s going-public transaction with AAJ in connection with the previously announced letter of intent dated November 26, 2020 (“LOI“) regarding a proposed transaction for AAJ to acquire all of the issued and outstanding securities of TUT (the “Transaction“). AAJ will complete a non-brokered concurrent $0.50 subscription-receipt financing (the “Private Placement“) for gross proceeds of up to $3,000,000. The pricing of the subscription receipt financing assumes the proposed 2:1 consolidation of AAJ’s outstanding securities in conjunction with the Transaction. Upon closing the Transaction, the subscription receipts will automatically convert into units of the resulting issuer – being one common share and one share purchase warrant exercisable for two years at $1.00. AAJ will also apply to list these warrants for trading on the TSX Venture Exchange.
About TUT Fitness Group Limited
TUT is a private British Columbia based company that has designed, patented and manufactured one of the world’s smallest and most affordable high-performance home gyms. Incorporated in 2018, TUT is an emerging player in the connected Home Gym and Fit Tech hardware space, targeting the US$9.4B Global Home Exercise Equipment Market and Online Fitness Market, expected to be US$30B by 2026. At 32 pounds, TUT’s flagship products, the TUT TrainerTM and Rower are lightweight and more affordable than other alternatives. TUT’s proprietary “Time Under Tension” technology creates more load on the muscles than conventional training and cardio machines, while placing less pressure on joints and tendons. The net result is a higher caloric burn and a better workout than comparable machines.
For further information please feel free to contact:
VP Corporate Development, TUT Fitness Group
This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities described herein in the United States. The securities described herein have not been registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”), or any state securities law and may not be offered or sold in the “United States”, as such term is defined in Regulation S promulgated under the U.S. Securities Act, unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration requirements is available.
Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Certain statements in this release are forward-looking statements or information, which include completion of the proposed Transaction and related financing, listing of warrants, development of technologies, customer demand for TUT’s products, future plans, regulatory approvals and other matters. Forward-looking statements consist of statements that are not purely historical, including any statements regarding beliefs, plans, expectations or intentions regarding the future. Such information can generally be identified by the use of forwarding-looking wording such as “may”, “expect”, “estimate”, “anticipate”, “intend”, “believe” and “continue” or the negative thereof or similar variations. The reader is cautioned that assumptions used in the preparation of any forward-looking information may prove to be incorrect. Events or circumstances may cause actual results to differ materially from those predicted, as a result of numerous known and unknown risks, uncertainties, and other factors, many of which are beyond the control of the Company, including but not limited to, business, economic and capital market conditions, the ability to manage operating expenses, security threats, and dependence on key personnel. Such statements and information are based on numerous assumptions regarding present and future business strategies and the environment in which the Company will operate in the future, including the demand for its products, anticipated costs, and the ability to achieve goals. Factors that could cause the actual results to differ materially from those in forward-looking statements include, failure to obtain regulatory approval, the continued availability of capital and financing, equipment failures, litigation, increase in operating costs, the impact of COVID-19 or other viruses and diseases on the Company’s ability to operate, failure of counterparties to perform their contractual obligations, exchange rate fluctuations, government regulations, loss of key employees and consultants, and general economic, market or business conditions. Forward-looking statements contained in this news release are expressly qualified by this cautionary statement. The reader is cautioned not to place undue reliance on any forward-looking information.
There can be no assurance that the proposed Transaction or Concurrent Financing will be completed or, if completed, will be successful.
The forward-looking statements contained in this news release are made as of the date of this news release. Except as required by law, the Company disclaims any intention and assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Additionally, the Company undertakes no obligation to comment on the expectations of, or statements made by, third parties in respect of the matters discussed above.