pcNewsWire – Peekaboo Beans Inc. (TSX-V: BEAN) has closed first tranche of previously announced brokered and non-brokered private placements, raising $1.6 million in gross proceeds.
photo credit: Peekaboo Beans
Press Release
Peekaboo Beans Complete Initial Closing of Private Placement and Provides Corporate Updates
NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES. ANY FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF U.S. SECURITIES LAWS.
VANCOUVER, BC (FSCwire) – Peekaboo Beans Inc. (“Peekaboo Beans” or the “Company”) (TSXV-BEAN), a direct-sales retailer of children’s apparel, is pleased to announce that it has completed an initial closing of its previously announced brokered and non-brokered private placements of units for aggregate gross proceeds for approximately $1.6 million (the “Private Placement”). The Private Placement was brokered by Canaccord Genuity Corp. (“Canaccord”) and included a non-brokered component that closed concurrently. The Company intends to use the net proceeds to expand its independent sales network of “Stylists” into the United States, and expand its operations in Eastern Canada which will include, in each case, sales training, marketing initiatives, software development and inventory.
The Private Placement consisted of the issuance of 2,633,001 units at a price of $0.60 per Unit for aggregate gross proceeds of $1,579,800.60. Each unit (a “Unit”) consisted of one common share in the capital of the Company (a “Common Share”) and one-half of one common share purchase warrant (each whole warrant, a “Warrant”) with each Warrant exercisable by the holder into one Common Share of the Company at a price of $0.80 for a period of 24 months from the closing date. On closing of the Private Placement, Canaccord was paid a commission comprised of a cash fee in the amount of $67,158.04 and was issued an aggregate of 111,930 Agent’s warrants. Each Agent’s warrant is exercisable for Units at a price of $0.60 per Unit for a period of 24 months from the closing of the Private Placement. In addition, the Company also paid the Agent a $30,000 corporate finance fee in connection with the Private Placement.
All securities issued under the Private Placement, including securities issuable on exercise thereof, are subject to a hold period expiring four months and one day from the closing date.
Corporate Updates
The Company is excited to announce that in April 2017 it had its highest recruitment month to date of new stylists joining in Canada. “We look forward to continuing this momentum and building on this success as we expand into the US later this year” says Ms. Traci Costa, Founder and CEO of Peekaboo Beans.
The Company has agreed to issue an aggregate of 1,078,141 units to certain creditors of the Company at deemed price of $0.60 per unit in settlement of $646,884.75 of debt (the “Shares for Debt Transaction”). Additionally, the Corporation has agreed to issue an aggregate of 121,554 units at deemed price of $0.60 per unit to various consultants and former officers and/or directors of the Company in settlement of the various consulting fees, director fees and/or outstanding expenses payable of $72,932.60 (the “Shares for Services Transaction”). The units issued pursuant to the Shares for Debt Transaction and Shares for Services Transaction shall have the same terms and conditions as the Units issued in the Private Placement. The issuance of the units pursuant to the Shares for Debt Transaction and Shares for Services Transaction is subject to the approval of the TSX Venture Exchange. In accordance with applicable securities laws, all securities issued under the Shares for Debt Transaction and the Shares for Services Transaction including securities issuable on exercise thereof, are subject to a hold period expiring four months and one day from the closing date.
In addition to the foregoing transactions, on May 12, 2017, the board of directors of the Company granted an aggregate of 855,000 incentive stock options pursuant to the Company’s stock option plan to certain directors, officers and consultants. The options are exercisable at a price of $0.60 for a period of 10 years.
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.
Following closing of the Private Placement Peekaboo Beans has 10,164,424 Common Shares and 4,388,687 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.
For further information, please contact:
Peekaboo Beans Inc.
Mrs. Traci Costa
CEO and President
+ (604) 279-2326
traci@peekaboobeans.com
Investor Relations:
investors.peekaboobeans.com
1-855-692-3267
ir@peekaboobeans.com
To view the original version, visit: http://investors.peekaboobeans.com/overview/
Source: Peekaboo Beans Inc. (TSX Venture:BEAN)
