In 2021, Naked Brand Group Limited (NASDAQ: NAKD), the intimate apparel and swimwear company, saw its share price increase more than 100%. And that’s not all. After disclosing a new deal for aggregate gross proceeds of approximately $100 million, Naked Brand Group Limited appears to be under the radar of many investors. There is stock demand.
The New Deal: $100 Million
On February 25, 2021, the company announced a private placement of restricted ordinary shares and warrants, which offers $100 million in cash:
The ordinary shares will be sold at a per share price of $0.93. Each investor also will receive a warrant to purchase 100% of the number of ordinary shares for which it subscribes. The warrants will have an exercise price of $1.13 per share and will expire five years from the date of issuance. Source: Press Release
The most interesting, in my opinion, is the use of proceeds. NAKD expects to pursue acquisitions of other companies. Besides, thanks to the new financing, NAKD expects to accelerate its digital transition. With all these business initiatives in mind, I believe that more and more investors will be looking at the company. Demand for the stock will most likely increase:
If you are a long-term shareholder, you know well that investors are happy to buy NAKD shares. On February 1, 2021, the company noted another $50 million offer. It is quite exciting:
Relevant Equity Players Are Looking At The Company
There is a massive amount of market participants following all the corporate moves of NAKD. Among the Twitter users, I could see many market players commenting on the recent sale of equity. See below some of them. If you have been around for some time, you know these traders:
My Conclusion: Follow NAKD’s Cash
Trading with a market capitalization of more than $400 million, NAKD appears to have a significant amount of cash right now. It is very beneficial. It means that the company will have the liquidity to acquire other businesses or increase their marketing expenses. In any case, I would expect the company to see an increase in revenue in the coming months, which may push the share price up.
Let’s end the article with one of the most meaningful comments about the company’s stock financials. I believe that it says it all:
Disclosure: We don’t own $NAKD shares.