Naked To Exit Lingerie, Join With Car Firm

Naked Brand Group plans to join with a Hong Kong electric car company and exit the lingerie business.

It announced Monday that it has signed a definitive agreement under which it will acquire stock in three private entities which make up Cenntro Automotive Group (CAG), and take on that company’s name once the deal is completed. “The company expects to retain its Nasdaq listing and ticker symbol NAKD.”

Under the terms of the deal, “Naked “intends to divest its FOH Online business,” which is comprised of the licensed Frederick’s of Hollywood lingerie business.

Naked explained that Cenntro, a company which was founded in 2013, “has produced and delivered over 3,300 commercial electric vehicles, more commercial electric vehicles than any other EV manufacturer,” and that it hopes to achieve “2022 revenue of $506 million on sales of 21,500 vehicles and 2023 sales of 74,800 vehicles.”

“Under the agreement, Naked will issue shareholders of CAG a number of shares so that, upon the completion of the transaction, which is expected to occur prior to year-end, Cenntro shareholders will own approximately 70% of the combined entity on a fully-diluted basis.”

It added that “upon closing of the transaction, the majority of the Board will be appointed by Cenntro. Naked Brand Group chairman and chief executive officer Justin Davis-Rice and non-executive director Simon Tripp will remain on the board of the combined company.” — NM