Key Acquisition for Naked Brand Group Inc (NASDAQ:NAKD)

Naked Brand Group Inc (NASDAQ:NAKD)

Naked Brand Group Inc (NASDAQ:NAKD)

Naked Brand Group Inc (NASDAQ:NAKD) shares are up over 30% before lunch on news that it has acquired the sole owner of intimate clothing brand Frederick’s of Hollywood global online license. NAKD shares end Tuesday at $1.26 but before lunch shares had hit $1.82 on a volume figure over 18 times the daily average.

Naked Brand Group Inc (NASDAQ:NAKD)
One month daily candle-bar graph for $NAKD

Naked, Bendon, and Bendon Group Holdings Limited (“Holdco”) recently entered into a merger agreement under which both of Naked and Bendon will become wholly owned subsidiaries of Holdco, a newly formed Australian holding company.

Bendon will acquire all of the outstanding common stock of FOH in exchange for the forgiveness of debt owed by FOH to Bendon. As a result, Bendon will control FOH’s existing license to develop and sell online products under the Fredrick’s of Hollywood name. As part of the transaction, Holdco will issue to FOH shares, which would have otherwise been issued to Bendon at the time of the merger. Most of these shares will be transferred to the affiliate of Bendon which initially funded FOH. The issuance of the Holdco shares is expected to have a minimal impact on the amount of shares Naked Brand Group Inc (NASDAQ:NAKD) stockholders will have in Holdco.

Naked Brand Group Inc (NASDAQ:NAKD) sales have increased each year since 2015 when the company reported $0.6 million in sales. That number was followed by annual sales figures of $1.4 million and $1.8 million. However profit has been harder to grasp for the apparel company. In 2015, Naked Brand Group Inc (NASDAQ:NAKD) shareholders suffered a per share loss of (-$23.33). That loss narrowed in 2016 to (-$10.13), then narrowed again in 2017 to (-$1.77).

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

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About the author: Steve Clark is a 23-year Wall St professional with stints in M&A, risk management, and algorithm trading. Steve keeps his head in the game by looking for, and writing about, small companies that often get overlooked by the big investment firms.

Author: Steve Clark

Steve Clark is a 23-year Wall St professional with stints in M&A, risk management, and algorithm trading. Steve keeps his head in the game by looking for, and writing about, small companies that often get overlooked by the big investment firms.

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