Naked Brand Group Ltd. (NAKD), a company that designs, retails, and sells women’s and men’s intimates apparel and swimwear products, has gained an increase of 5.36% in aftermarket trading session. Consequently, NAKD is trading at $2.75 at the time of the writing. On Thursday, the stock closed the day at $2.61 after slumping 14.98% during regular trading hours. These fluctuations in stock price could be attributed to the announcement of a change in the trading symbol by the company.
Why NAKD Declined on Thursday?
On Thursday, NAKD announced that its trading symbol on NASDAQ would change from NAKD to CENN when the market would open on trading on 14th of January 2021, i.e. today. The change in the symbol follows the previously announced acquisition of Naked Brand Group by Cenntro Automotive Group and its name change to Cenntro Electric Group Limited.
Receipt of Approval Letter from NASDAQ
On 30th December 2021, the company announced that it had received the final approval letter for Cenntro Electric Group Limited with regards to listing its ordinary shares on NASDAQ from Nasdaq’s Listing Qualifications Department. The company expected that the merger would be closed by the end of the year 2021after receiving Nasdaq listing approval and shareholder approval at the Company’s Extraordinary General Meeting. Following the closure of the transaction, the trading symbol for the company’s ordinary shares was to remain as NAKD.
Approval of Acquisition by Shareholders
On 21st December, NAKD announced that its shareholders had overwhelmingly approved the acquisition of the Cenntro Automotive Group Limited, Cenntro Automotive Corporation, and Centro Electric Group, Inc. at the extraordinary general meeting of shareholders of the company, held on the same day, i.e. 21st December 2021.
Future Outlook for NAKD
During the last three months, NAKD stock has declined by approximately 75%, primarily owing to the developments associated with the merger and acquisition of the company. Looking ahead, the stock, which would be called CENN, is expected to make a sharp recovery as the stock has got analysts’ approval for long-term investments.