The company says that the offering, which is being made through Costa Rica-based financing company Crisnic Fund, will raise up to $2m to launch the direct-to-consumer (DTC) strategy and expand the company’s product offering.
Crisnic Fund specializes in investments in micro-cap companies, and in a S-1 filing with the SEC, the company has agreed to purchase the shares in Enhance Skin Products at market value and without investment fees.
Enhance is a key player in the cosmeceuticals category and has developed its business off the back of the Visible Youth and Visible Youth Professional brand names, which are both based on the key anti-aging ingredient hyaluronan.
Revitalizing skin care line
The finance will also allow the company to start up direct sales of its Visible Youth anti-aging line, with a focus likely to be on its Revitalizing Skin Formula, Eye Zone Gel and Moisturizer product lines.
Dr Sam Asculai CEO of Enhance Skin Products said the SEC filing was a step towards “insuring the DTC program will finally be launching providing Visible Youth products access to affiliate networks utilizing communication tools such as blogs, webi-based social networks such as Twitter and Facebook, and email to introduce and acquire customers to select products.”
The company is the latest in a line of leading personal care and cosmetics players to eye the realms of social networking websites and email as a means of targeting consumers directly.
Growing trend to target social networking websites
In recent months a rash of cosmetics companies have announced major social networking initiatives have included some of the biggest names in the business, including Revlon, L’Oreal, Estee Lauder and Natura.
Last month the skin care brand Swedish Skin announced that within a week of launching Facebook and Twitter accounts it had received a rush of fans and customers.
The company said that its Facebook fan total alone had exceeded 2,000 people, and added that the initiative would allow it to engage consumers with discount codes at the same time as communicating its branding and marketing message.