Naked Raises Capital, Changes Debt For Stock

Naked Brand Group Limited reached a “definitive agreement for a private placement of restricted common stock and warrants for aggregate gross proceeds of approximately $3.9 million” with investors led by Los Angeles-based Acuitas Capital. One investor was Naked’s former CEO, and now executive chairman, Justin Davis-Rice.

The company added that “in conjunction with the private placement, Naked completed a $5.35 million debt restructuring in exchange for common stock at $0.40 per share with key global manufacturing and strategic partners within the company’s wholly owned brand, Bendon Limited.”

Naked described the private placement: “the ordinary shares were sold at a per share price of $0.255 pursuant to a subscription agreement with each investor. Investors who participated in the private placement also received a warrant to purchase 100% of the number of ordinary shares for which it subscribed. Naked intends to use the proceeds from the private placement for working capital, general corporate purposes and the company’s new strategic alliance with Bendon Limited’s key global manufacturing partners.”

Stated Davis-Rice, “our balance sheet now has an infusion of capital which will allow us to execute on our growth strategy and positions Naked with a clear line of sight to a resumption of revenue growth in 2019. I participated in this financing to demonstrate my confidence in the company and look forward to providing further updates on our new strategic direction in the weeks to come.” — NM