During the regular session, NAKD stock fluctuated between %3.06 and $2.60 at 15.47 million shares. Following the announcement, the stock saw a reversal as it gained 5.36% at $2.75 in the after-hours session.
What is Happening with NAKD?
Recently, the swimwear and apparel company, Naked Brand Group (NAKD) acquired the outstanding capital stock of three entities comprising Cenntro Automotive Group (CAG). Further, this acquisition was completed after its approval by shareholders at an Extraordinary General Meeting on December 21, and Nasdaq Listing Qualifications Department on December 30.
The now acquired Cenntro Automotive Group is a commercial EV technology company. It has advanced, market-validated commercial electric vehicles. As of November 2021, Cenntro had delivered 3,600 commercial EVs in over 16 countries.
The Combined Company
After closing of the acquisition, the company changed its name to “Cenntro Electric Group Limited”. Moreover, the combined company is led by Chairman and CEO of CAG, Peter Wang along with his management team. In addition, the board of the combined company includes the former Chairman and CEO of NAKD, Justin Davis-Rice and non-Executive Director Simon Tripp.
Furthermore, the combined company has in excess of $US250 million in cash along with liabilities of less than US$10 million.
Ticker Symbol Update
Based on the name change following the completion of the acquisition, the company also announced its trading symbol change on Thursday. Hence, the company will trade under the new ticker symbol “CENN” at the opening of the market trading on Friday, January 14, 2022.
Investors’ Response to NAKD Merger
Initially, the sudden pivot of the apparel company to EV was taken pretty positively by the investors. The stock saw some good gains when the news was first disclosed. After the initial hype subsided, the investors’ actual frights came to light about the merger. Consequently, the stock suffered great losses, losing 51.31% year-to-date. Moreover, another reason for the downtrend in the stock has been the stock lock-up related to the merger. The Hong Kong-based companies Cenntro Enterprise Limited, and Trendway Capital Limited made an agreement with China Leader Group. As per the agreement, the companies locked up their holdings in Cenntro Electric. Additionally, the companies would not sell their shares until 180 days after the completion of the merger.