Management at Peekaboo Beans, a Canadian retailer of ethically sourced children’s apparel, is moving forward with plans to take the company public.
The British Columbia-based company announced Friday that it has signed an agreement with North Group Finance Ltd., effective May 30, to carry out a reverse takeover of North Group. When the transaction is complete, the resulting apparel company, Peekaboo Beans Inc., will be listed on Canada’s TSX Venture Exchange.
“Going public provides us with greater opportunity to raise capital so we can deploy and achieve all our goals to grow as a company in a strategic way,” Traci Costa, Founder and CEO of Peekaboo Beans, said in an interview for DSN‘s March 2016 feature on the company.
Costa launched Peekaboo Beans in 2006 to provide a new kind of playwear for kids. The brand’s design team collaborates with child development specialists, educators and therapists to create pieces that encourage “free play” in children, whether by incorporating custom-made fabrics or avoiding fussy elements that hinder movement, like buttons and zippers.
The company initially operated through a traditional retail model. Costa, who shares ownership with friends, family and outside investors, switched to direct sales amid Canada’s financial downturn, when many retail shops were closing their doors. Currently, the products are sold through about 1,000 independent Stylists across Canada. Annual sales topped CAD$3.5 million in 2015.
In addition to the deal that will establish Peekaboo Beans as a public company, management announced a concurrent round of financing that is expected to raise up to CAD$2.52 million, to be used for production, salesforce training and recruiting, and working capital. Prior to soliciting outside investors, Peekaboo Beans opened the refinancing round to its Stylists and employees, who have invested CAD$680,000 in the business to date.
*At the time of this writing, CAD$1.00 was equal to USD$0.77.