Naked: $46.9 Million In GameStop-Style Surge

Naked Brand Group took advantage of a recent “GameStop-style surge” in its stock price to sell 29,415,000 of its shares and generate net proceeds of approximately $46.9 million.

A company press release said a “previously announced registered direct offering” of its ordinary shares had sold for “$1.70 per share, which is at-the-market under Nasdaq rules.”

The Wall Street Journal commented on January 28, Naked shares have “rallied more than 600% this year and closed at $1.38 a share on Wednesday [January 27].” It added that “Traders on Discord were looking for a GameStop-style surge, calling for the stock to climb to $5 on Thursday.”

Naked shares drifted down last year, and closed at 7 cents on November 13, 2020. Thereafter they began to slowly rise over the next two months to close at 39 cents on January 26, 2021. They jumped to close at $1.65 on January 29. As we went to press the shares were trading just under $1.20.

In the six months ending July 31, 2020, Naked lost 18.5 million New Zealand dollars (NZD) (about $13.5 million) on sales of 34.6 million NZD (about $25.2 million), compared to a loss of 28.7 million NZD on sales of 42.1 NZD in the same period a year before. — NM