Naked Brand Group Limited (NAKD) stock soared 31.26% in the after-hours trading session at the price of $0.93 following a definitive stock acquisition agreement with Cenntro Automotive Group, Inc.
Naked Brand Group Limited is a leading e-commerce company of intimate garments. It is the private marketer and retailer of the famous intimate apparel brand named Fredericks of Hollywood.
NAKD Announced Stock Acquisition Agreement
On 8th November 2021, NAKD published that it had entered into a definitive agreement with privately-held Cenntro Automotive Group, Inc. Under the deal, NAKD will receive the outstanding stock in three entities for its Stock Acquisition Agreement. Upon closure of the transaction, the company anticipates changing its name to Cenntro Automotive Group. However, it will retain its NASDAQ listing and ticker symbol, NAKD.
Under the deal, NAKD will issue the number of shares to shareholders of Cenntro Automotive Group, Inc. Upon closure of the transaction, Cenntro stockholders will own around 70% of the entity on a fully diluted basis. Additionally, the company is bound to have over $282 million in cash before the closing. Upon closing, Cenntro will appoint the majority of the board members of NAKD. Justin Davis-Rice, Chief executive officer of NAKD, will serve the board of the combined company. The deal is subject to customary closing conditions.
Cenntro Automotive Group, Inc.
Cenntro has designed and delivered above 3,300 industrial electric vehicles since 2013. Its decentralized and scalable production model generates high returns with minimum associated infrastructure expenses. The company expects EV sales to reach approximately $2.1 billion by 2023. The company anticipates generating revenue of $25.3 million from sales of 1,500 vehicles and $506 million from 21,500 vehicles by 2021 and 2022, respectively.
Management Comments
Chairman and Chief Executive Officer of NAKD, Justin Davis-Rice, remarked that agreement with Cenntro is the most compelling opportunity as it has unique commercial EV technology. It has produced and delivered highest numbers of commercial EVs that are being used by many leading companies. With Cenntro’s exceptional vehicle pipeline, the combined company will provide an opportunity to shareholders to invest in a company that has attained an inflection point during its development.
