Naked Brand (NASDAQ:NAKD) stock is taking off on Friday after announcing preliminary results from a recent meeting.
That meeting was to hold a vote of shareholders that would allow the company to continue its transformation into an e-commerce business. That involves the divesture of its brick-and-mortar business Bendon.
According to a press release from the company, the preliminary votes have shareholders of NAKD stock supporting such a change. News of the approval is what has shares of the stock climbing as investors prepare for the transformation.
Naked Brand notes that this change is set to be officially agreed on next Friday. Once complete, it will set the company up as a leading e-commerce business in the intimate apparel market. The divesture will also result in it having $270 million in cash on hand and no debt.
Justin Davis-Rice, the CEO of Naked Brand, said this about the news boosting NAKD stock higher today.
‘With available cash of $270 million, a clean balance sheet with no debt and a re-invigorated management team and board of directors, I could not be more excited to execute on our business strategy to ultimately drive revenue growth with positive free cash flow.”
Naked Brand is among the meme stocks loved by Reddit. Sometimes that means the price and volume trade can get a bit out of hand. However, today trading is mostly normal with more than 95 million shares of NAKD stock changing hands. That’s still below the stock’s daily average trading volume of about 169 million shares.
NAKD stock was up 6.6% as of Friday afternoon and is up 163.3% since the start of the year.
This isn’t all the recent Naked Brand news that investors in the stock need to be aware of.
We’ve been covering NAKD stock quite a bit lately. That includes a breakdown of its plans to revamp its business, why the stock was up earlier this week, as well as why Reddit was talking about it recently. Investors that want to learn more about the stock can check out the following links.
More NAKD Stock News
- Naked Brands Has A Tall Order Ahead In Revamping Its Business
- NAKD Stock: The Big News Sending Naked Brand Soaring on Monday
- 5 Reddit Penny Stocks Seeing the Most Chatter Thursday
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article.