Shares of the Naked Brand Group Limited (NAKD) stock were rising in the premarket training session today on January 3, 2022. NAKD stock price saw a push of 4.10% to reach $5.58 a share at the time of this writing. The stock was gloomy in the previous trade and went down by 6.62% at closing. Let’s understand the reason behind this rise.
What’s Happening?
NAKD stock has started the year 2022 with bullish sentiment following the announcement of completing the acquisition of Cenntro Automotive Group. Recently Naked Brand Group and Cenntro Automotive Group Limited, a privately held company, have announced the completion of the previously announced acquisition of outstanding capital stock of three entities consisting of Cenntro Automotive Group. NAKD stock’s shareholders previously approved the acquisition on December 21, 2021. Nasdaq’s listing qualification department approved the acquisition on December 30, 2021.
The new name of the company will be Cenntro Electric Group Limited, in connection with the completion of this acquisition. The combined company has cash of US$250 million as of the completion of the transaction to finance the organic growth.
Peter Wang, the chairman, and chief executive officer of the Cenntro will lead the combined company. The Chief Executive Officer of the Naked Brand Justin Davis-Rice and Non-Executive director Simon Tripp will remain members of the board of the combined company.
How much will NAKD stockholders own the combined company?
The shareholders of NAKD stock will own 31.85% of the combined company after the completion of a transaction. CAG and its equity stakeholders will own the rest of the company.
About Cenntro Automotive Group
Cenntro Automotive Group is one of the leading EV technology companies working on the production of advanced market validated commercial vehicles.
On December 27, 2021, Cenntro reported the production and shipment of 628 newly launched model Logistar 200 or LS200 to the European markets. European and American customers strongly demanded these newly launched light urban delivery vehicles. The company expects to deliver a minimum of 20,000 vehicles in 2022. The management of Cenntro is confident that the company will meet the production guidance of 20,000 vehicles in 2022.
Conclusion
The sentiment is positive for NAKD stock in the stock market today. It would be interesting to see how long it will persist as the stock market is highly unpredictable. In the last thirty days, the stock has lost 35% and 41.29% in the last six months.
