Naked Brand Group Limited (NAKD) shares gained 11.11% to trade at $0.7 in after-market on Thursday, April 29, 2021. Earlier, NAKD’s stock lost 1.90% to close Thursday’s session at $0.63. NAKD shares have declined 13.69% over the last 12 months, and they have moved up by 15.81% in the past week. Over the past three months, the stock has lost 54.68%, while over the past six months, it has surged 584.78%.
Let’s see is there any reason behind its gain in the after-market session on Thursday?
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Non-Compliance notice from Nasdaq
On April 29, 2021, Naked Brand Group was notified by the Listing Qualifications Department of The Nasdaq Capital Market that the company did not meet the minimum bid price requirement set forth under Nasdaq Listing Rule 5550(a)(2).
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NAKD minimum bid price for its ordinary shares was below $1.00 per share for a period of 30 consecutive business days.
There will be no effect at this time on the listing of the Company’s ordinary shares, and the shares will continue to trade uninterrupted under the symbol NAKD.
The Company can regain compliance with the minimum bid price requirement, within 180 calendar days.
Preliminary results of the extraordinary general meeting
On April 23, 2021, Naked Brand Group announced that shareholders voted to approve the Company’s proposed divestiture of its Bendon brick-and-mortar operations, in a shareholders meeting held on Friday, April 23, 2021.
It is now expected that the company will sign the definitive agreement for the proposed divestiture and simultaneously close the transaction on or about Friday, April 30, 2021.
New Chief Financial Officer appointment
On April 19, 2021, Naked Brand Group Limited appointed Mark Ziirsen to the position of Chief Financial Officer, replacing Cheryl Durose.
Business update on company’s transformation
On March 29, 2021, Naked Brand Group Limited said that it has improved its balance sheet with the completion of multiple strategic capital financings which provided cash proceeds of $270 million and eliminated all previous debt servicing obligations.
The company also said that it is working on the digital transformation to build out proprietary technology to meet the needs of consumers in today’s digital world.
$100 Million private placement agreement
On February 25, 2021, Naked Brand Group Limited signed a definitive agreement for a private placement of restricted ordinary shares and warrants.
The company will get gross proceeds of approximately $100 million will be used to develop the Company’s technology solutions, increase its existing digital footprint and it will accelerate its transition to a pure-play e-commerce platform business.
The ordinary shares will have a share price of $0. 93. The warrants will have an exercise price of $1.13 per share and will expire five years from the date of issuance.
Conclusion
Despite a non-compliance notice from Nasdaq, NAKD stock turnaround on Thursday and surged in the after-hours which does not make any sense. The company is in a transition process after declining rapidly during the Covid-19 pandemic. It is hard to predict how NAKD will perform in the coming days.