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VANCOUVER, March 3, 2017 /CNW/ - Peekaboo Beans Inc. ("Peekaboo Beans" or the "Company") (TSXV-BEAN), a direct-sales retailer of children's apparel, today announced plans to expand its independent sales network or "Stylists" into the United States (the "US Expansion"), along with continued strategic growth in Canada. It is anticipated that Peekaboo Beans will initially launch in Fall 2017 in the Pacific Northwest of the United States region to gather marketplace feedback and launch nationally across the United States in 2019.
"Our expansion into the United States is in direct response from interest in our brand in the United States," according to Ms. Traci Costa, Founder and CEO of Peekaboo Beans. "In 2015, the direct sales industry in the United States generated over US$36-billion in retail sales and employed over 20-million Americans, the vast majority of which are women. "1 in 7 seven households owns a direct sales business in the United States and Peekaboo Beans offers a real entrepreneurial opportunity for women to sell a product they believe in and buy for their own children," according to Ms. Costa.
Additionally, Peekaboo Beans is pleased to announce that it has engaged Canaccord Genuity Corp. ("Canaccord") to act as lead agent and sole bookrunner in connection with a private placement for aggregate gross proceeds of up to $5,000,000 (the "Offering"). The Company will issue up to 6,666,667 units of the Company (the "Units") at a price of $0.75 per Unit pursuant to the Offering. Each Unit will be comprised of one common share of the Company and one common share purchase warrant (each, a "Warrant"). Each Warrant shall be exercisable into one common share of the Company at a price of $1.05 for a period of 24 months following closing of the Offering. The exercise period of each Warrant may be accelerated by the Company if at any time during the term of the Warrant the volume weighted average price of the Company's common shares on the TSX Venture Exchange is equal to or greater than $1.55 over a period of 10 consecutive trading days. The Company has also granted Canaccord an option to sell up to an additional 1,000,000 Units. The Offering is being sold on a "commercially reasonable efforts" basis and is subject to completion of satisfactory due diligence by Canaccord. Concurrent with the Offering, the Company may issue up to $1,000,000 of Units on a non-brokered basis (the "Non-brokered Offering").
The Offering and the Non-brokered Offering are expected to close concurrently on or about March 31, 2017, and are subject to approval of the TSX Venture Exchange, and in the case of the Offering, customary closing conditions for brokered financings. Closings of the Offering and Non-brokered Offering are not conditional on each other.
The Company intends to use the proceeds from the Offering and Non-brokered Offering for the US Expansion and expanding operations in Eastern Canada which will include, in each case, sales training, marketing initiatives, software development and inventory.
About Peekaboo Beans
Peekaboo Beans Inc. is a high-quality, ethically manufactured children's apparel brand sold exclusively through its direct-sales network of Stylists or independent sales representatives. In line with its mission, Peekaboo Beans develops custom fabrics and designs its apparel to promote play in children's lives. Through the direct-sales model, Peekaboo Beans trains women to be entrepreneurs, build a business and generate income on their own terms.
Peekaboo Beans has 7,026,423 Common Shares and 2,960,258 warrants outstanding.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This news release may include forward-looking information that is subject to risks and uncertainties. All statements within, other than statements of historical fact, are to be considered forward-looking, including statements with respect to anticipated use of proceeds from the Unit Financing and completion of additional tranches pursuant to the Unit Financing. Although the Company believes the expectations expressed in such forward-looking information are based on reasonable assumptions, such information is not a guarantee of future performance and actual results or developments may differ materially from those contained in forward-looking information. Factors that could cause actual results to differ materially from those in forward-looking information include market prices, successes of the operations of the Company, continued availability of capital and financing, general economic, market or business conditions and those risks contained in the Company's filing statement dated August 29, 2016, a copy of which is available on SEDAR at www.sedar.com. There can be no assurances that such information will prove accurate and, therefore, readers are advised to rely on their own evaluation of such uncertainties. The Company does not assume any obligation to update any forward-looking information except as required under the applicable securities laws.
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SOURCE Peekaboo Beans Inc.
For further information: Peekaboo Beans Inc., Mrs. Traci Costa, CEO and President, + (604) 279-2326, email@example.com; Investor Relations: investors.peekaboobeans.com, 1-855-692-3267, firstname.lastname@example.org