Naked Brand Group (NAKD) Stock Continues Skyward

Naked Brand Group Ltd (NASDAQ: NAKD) is continuing its climb to the top in the market this morning after dramatic gains on Friday. The gains are the result of an announcement that the company may be announcing a merger or acquisition transaction in the very near future. Here’s what’s going on:

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NAKD Stock May Enter Clean Energy

During the annual shareholder meeting in late august, the CEO of Naked Brand Group said that it had successfully divested its brick and mortar operations, successfully becoming an ecommerce company. 

However, he also said that the company was looking for merger and acquisition opportunities to extend shareholder value. 

In an updated letter to shareholders on Friday, Justin Davis-Rice, CEO at NAKD provided information surrounding how the search for a suitor was going, and the search seems to be going well. In fact, according to the letter, a merger/acquisition target has been chosen and the two companies are working on due diligence. Here’s a quote from the letter:

“I am happy to report that after extensive searching and due diligence, we believe we have found a disruptive opportunity in the clean technology sector. Due diligence on both sides is progressing and we believe the business combination will reward our patient shareholders.”

This Is Big News

The news that a deal may be on the horizon is big enough, but the fact that the deal is going to be a clean energy play is even more exciting. After all, Naked Brand Group is a swimsuit and apparel company, but should the deal go through, it will also focus on clean energy technology, entering into a completely different, and highly lucrative, industry. 

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Final Thoughts

All told, Naked Brand Group is running up for great reasons. First and foremost, the company has divested an arm of the business that was bleeding it dry and decided to focus on its more profitability e-commerce operations. 

Moreover, the company is tapping into an emerging industry that doesn’t simply have the opportunity to grow, it’s being fed figurative fertilizer by governments around the world as the world works to go green and create a positive environmental change. 

All told, NAKD stock is one to watch closely ahead. 

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