Blending along a path for rhinestone template..need help!

I am trying to create a rhinestone template of my company logo. I have it as a PNG image as well as text because me logo is of the letter "V" in a downloaded font. I have converted the text to an outline. I created two circle shapes with the diameter of 4.3mm, the exact size of my rhinestones. I use the blend tool on the two circle shapes, select option "New Path", select my logo, and then select option "Blend Along full path" but it doesnt. Its supposed to create an outline of 4.3mm circles all around the letter but it doesn't. Tried everything I can think of, new user here