On Thursday, beauty website, BeautyKind, announced that the Securities and Exchange Commission (SEC) has approved of its Regulation A+ initial public offering (IPO). This offer is being conducted by WR Hambrecht + Co, which acts as the sole underwriter. The company is currently seeking a minimum of $5M to a max of $10M at a price of $6.25/share (minimum purchase is a 100 shares or $625).
As previously reported, the website is a hybrid charity-ecommerce platform where consumers raised funds for charitable causes while they shop. 5% of every purchase from BeautyKind goes to a charity selected by the customer. The company rewards its customer for sharing and building a “CARE network.” For every $5 the customer’s network raises, the customer earns one Beauty Point, which equals $1.
A customer can use these dollars as currency on the site to purchase products or samples, upgrade or pay for shipping, donate to their cause, or even take out as cash on a debit card. The company sells beauty, hair, fragrance, and skin care products through direct sales. It also has a store inside the Bloomingdale’s outlet store in New York City.
For the six months (ending July 2015), the company had revenues of $517,713. The company explained:
“We believe that the minimum net proceeds from this offering of approximately $4,600,000 will be sufficient to fund our current operations through January 2017.”
BeautyKind Founder and CEO, Hil Davis, stated:
“Regulation A+ provides a way for individuals to own a piece of BeautyKind directly, in order to help fuel its new ventures and overall brand development. We’re excited to offer investment opportunities that not only reach our customers, but also a wider audience, and look forward to taking this pivotal next step in the brand’s lifecycle.”
“This fundraising initiative allows us to expand our brand ownership to anyone and everyone, and not just accredited investors, especially at such an early stage in our growth.”
The company noted that it recently launched a series of new initiatives and activations, including its first national broadcast advertisement, which aired last month. BeautyKind was present at this year’s SXSW, and is set to make its debut at the WWD Beauty CEO Summit on May 9th-11th. Funds raised through the initiative will go towards mainly working capital, along with marketing and inventory.
Following the funding round, BeatyKind intends on listing on the OTCQX marketplace thus providing liquidity for early shareholders.
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