Naked Brand (NASDAQ:NAKD) stock is soaring higher on Friday after announcing plans for a merger.
The news was revealed by the company in a filing with the U.S. Securities and Exchange Commission (SEC). The announcement takes a portion from the company’s annual shareholder meeting late last night, which is when the merger news was announced by Naked Brand.
In that announcement, the company notes that it has been looking for a merger or acquisition target following its divesture of Bendon. This was the company’s brick-and-mortar business.
Naked Brand said that it was in no rush to find a target. This lead to it reaching out to multiple companies and making sure it found the right deal for investors. And now it seems that the search is over.
Here’s a portion from the SEC filing talking about the Naked Brand merger.
“Over the past several months, our management has travelled extensively, meeting with companies that potentially meet those criteria. I am delighted to confirm we believe we have found such a company. We have recently reached preliminary agreement on non-binding terms and are now conducting due diligence. The company is in a sector which has been forecast to have strong growth for many decades to come. There is, of course, no guarantee that we will complete the deal, on the preliminary terms we have negotiated, or at all.”
NAKD stock is already seeing strong trading today on the news. As of this writing, more than 44 million shares of the stock have changed hands. That’s quickly approaching the company’s daily average trading volume of 58.5 million shares.
NAKD stock was up 12% as of Friday morning.
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.