- The stock price of Naked Brand Group Ltd (NASDAQ: NAKD) increased over 25% during intraday trading this morning. This is why it happened.
The stock price of Naked Brand Group Ltd (NASDAQ: NAKD) increased over 25% during intraday trading this morning. Investors are responding positively to Naked Brand Group releasing an update to the chairman’s address to shareholders from its recent annual meeting of shareholders on August 20, 2021 from Chairman and Chief Executive Officer Justin Davis-Rice.
On August 20 at the Annual Meeting of shareholders, Davis-Rice provided an update on the status of the company plans to find a merger or acquisition partner following the divestiture of the bricks-and-mortar operations of Bendon that resulted in an expanded balance sheet with a net cash position of $270 million for Naked Brand Group.
Here is an excerpt from what Davis-Rice wrote in the shareholder letter:
I am happy to report that after extensive searching and due diligence, we believe we have found a disruptive opportunity in the clean technology sector. Due diligence on both sides is progressing and we believe the business combination will reward our patient shareholders.
During my career as an owner and operator of many diverse businesses, I have always been attracted to commercial opportunities that benefit our environment and help contribute to the growing ESG mandates that major corporations are implementing today across the globe. This company is a market leader with cutting edge patented proprietary technology that we believe satisfies those ESG mandates. We have made significant progress over the past few weeks and believe the path to a definitive agreement is in sight. However, there can be no assurance that we will sign a definitive agreement, or if we do sign an agreement, that we will be able to close the business combination.
It’s also worth mentioning that NAKD is favorite amongst investors who are active on social media platforms like Reddit, Discord, Twitter, StockTwits, etc. NAKD was one out of several “meme stocks” that were short-squeezed multiple times over the past year.
Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.