Naked Brand Group Just Turned Itself Into a De Facto SPAC: What It Means for Investors
Following a lengthy struggle to avoid delisting by the Nasdaq Stock Market because its shares trade under $1, swimwear and lingerie company Naked Brand Group (Nasdaq: NAKD) saw its shares skyrocket 43% in after-hours trading on Nov. 8. The catalyst was an announced merger with privately held electric vehicle (EV) company Cenntro Automotive Group.
At this point it's unclear if Naked will effectively cease to exist or will continue making lingerie, but it will cease operating under its own name, taking Cenntro public in the process, almost as if it were a special purpose acquisition company (SPAC). Here's what it could mean for investors, with the move potentially bullish if Cenntro can live up to its growth goals.
Naked Brand has seen many ups and downs during 2021, including its near-removal from the Nasdaq exchange. Back at the year's start, its shares rose to $1.65 as it briefly became a meme stock, though its appeal soon faded and its stock slipped below $1 in late March.
Source Fool.com
