Peekaboo Beans (BEAN.V) made known its intentions to expand into the American market today.
According to the news release, the innovative BC-based children’s wear manufacturer announced a $6.0 million-dollar financing where it would issue up to 6.7 million units of the company at a price of $0.75 per unit.
There are no details as yet of what the units are comprised of, but the company plans to use the proceeds to expand its independent sales network in the U.S. as well as expand Peekaboo Bean’s business in Eastern Canada.
The company, founded in 2006, is helmed by Traci Costa, who decided it was high time to provide ethically manufactured clothing and accessories for babies and small children.
Peekaboo operates with the sensibility of a socially-aware corporation and initiatives like the company’s Playground Builders program and Pop-up Play Dates events have earned the company numerous awards including YWCA Outstanding Workplace 2016, BIV Forty under 40 2010, Business Excellence Award 2015 and the Ethel Tibbits Woman of Distinction Award 2015.
Peekaboo’s direct sales retail model is also paying off under Costa’s passionate direction. In fact, Peekaboo Beans now has over 1,100 independent sales reps and did $3.5 million in sales during fiscal 2015.
The company’s plan for southward expansion makes all sorts of sense considering the direct sales market in Canada is much smaller than its American counterpart which generated record sales of US$36.1 billion in 2015.
It will be interesting to watch this one unfold.
FULL DISCLOSURE: Peekaboo Beans is NOT an EQUITY.GURU client.