Sex shop’s IPO –to sell or not to sell?

Peekay Boutique is an Auburn-based sex shop that intends to invest $38 million in an IPO. Meanwhile, a national seashore Smartphone application has been unveiled, and T-Mobile has acquired the rights to an arena in Las Vegas.

Early in 2015, investors’ emotions cooled down for numerous inceptive public offerings as they grew anxious of various accomplishments. Even then, they were also bored with similar investments, thus expressing idealistic assumptions. The investors might get overwhelmed by the impending news of the IPO of Peekay Boutiques. Alternatively, it might be a slight irony for them.

The Peekay Boutique administers 48 stores under four brands including the Lovers and A Touch of Romance. Their intention is to sell up to $38 million worth of stock at $8 and $6 per share.

Lisa Berman, the CEO, said last year in an interview that the companies dream is to be “a leader in changing the sexual wellness perception.” In conclusion, Lisa reiterated that “We have reached over 5,000 Stock-Keeping Units available which is ranging from $265 vibrators to $1 condoms.”

In 2012, Peekay Boutique founder Phyllis Heppenstall was able to loan money to investors which were used to transact in a similar business. Their last recorded agreement clearly shows that the deal may not be appealing.

The latest report sale for Peekay was done on Sept. 30, which typically showed an increased percentage of 5.2 percent to $30.9 million. Its net loss increased by $60 percent to $4.5 million. The above results are similar to that of 2014.

The IPO plan purchased was cataloged in May as raising $50 million. Currently, it aims to achieve $25 and $38 million respectively. Their main idea was to partner with NASDAQ, but now Peekay says it can’t qualify for a “Profiting” period.


 The main reason is that the company was formed by a combination of numerous shell companies.

Also, Peekay ventured privately into labeling goods and offered them with about six percent of commissions. The idea was later interrupted as the corporation targeted certain manufacturers. Additionally, lack of capital has dragged Peekay Boutique behind. According to sources, the last new store was added ten months ago in California.

Last year, Peekay acquired heavy debt, and they are still paying $6.6 million a year in an interest form. In fact, the company acquired waivers from various lenders since three failed to meet the loan agreement. It has helped them to turn some debt into stock. Sources say that it owes $38 million and $16 million from IPO.

What will be the outcome if the stock market restricts Peekay’s IPO plan? The fact is that the agreement was set to pay the $38 million by Dec. 31. However, Peekay has obtained another waiver, hence extending the loans for three years. The process will only take effect if the stock offering is complemented on time.