What happened to NAKD?
If you, like me, invested in NAKD stocks during the first half of 2021, then couldn’t keep up with the circus that unravelled in the second half – here’s a brief overview of what happened over the 2022 New Year.
On Friday, 31st of December, 2021, an acquisition resulting in a change of control of Naked Brand Group Limited (NAKD) was closed. After numerous suspenseful months of hype, fear and doubt, the Australian-based intimate apparel provider was officially expanding and rebranding.
On this day, Naked Brand Group (NAKD) CEO, Justin Davis-Rice, announced the acquisition of Cenntro Automotive Group, one of the world’s leading commercial electric vehicle (EV) manufacturers and pioneers in EV research and development.
But only if certain conditions were met.
In order to finalise the acquisition and satisfy the Nasdaq listing requirements, the NAKD share price needed to consistently maintain a significantly higher value than what it had been trading at for the larger part of the year.
To satisfy Nasdaq share price requirement, NAKD shareholders approved a motion to begin trading on a 1-for-15 split adjusted basis, which came into effect on December 22, 2021. This meant that NAKD shareholders now had one fifteenth of the number of NAKD stocks they previously held, but each share was now worth fifteen times more.
The deal was finalised and in the December 31st press release, Naked CEO, Justin Davis-Rice, announced that Cenntro Automotive Group CEO, managing director and chairman, Peter Wang, was to lead the combined company,
Following the transaction’s conclusion, NAKD shareholders immediately owned 31.85% of the combined company, while Cenntro Automotive Group and its equity stakeholders own approximately 68.15%, on a fully diluted basis. Naked Brand Group and Cenntro Automotive Group had combined to form Cenntro Electric Group Limited.
In regard to the acquisition, Justin Davis-Rice had previously announced that Cenntro Automotive Group Limited would provide shareholders with a unique investment opportunity, supporting global vehicle electrification and sustainability that will deliver long-term value. He then went on to say that he looks forward to collaborating with the company as it strategically positions itself to achieve its growth objectives.
On the 13th of January, 2022, Cenntro Electric Group Limited (NASDAQ:NAKD) announced that its trading symbol on the Nasdaq Capiltal Market (NASDAQ) would be changing from “NAKD” to “CENN” for the open of market trading the following day, thus fully completing the merge. But no short squeeze, yet.
What are the growth objectives of Cenntro Electric Group?
Cenntro Electric Group Limited has developed superior electric commercial and industrial vehicles, with engine power comparable to that of diesel engines and 60% less running noise. The battery is also up to three times more powerful than that included with competitor’s models. Now Cenntro Electric Group aims to make their vehicles as accessible as possible.
As logistics companies in Japan are striving to reduce expenses, while taking advantage of the pandemic-inspired e-commerce boom, locally produced vehicles have failed to meet costs.
In response to the increasing global demand for electric vehicles, Cenntro has promised to produce and deliver a minum of 20,000 commercial electric vehicles in 2022. The first delivery will be a fleet of 2,000 Metro (Kei Car Type) electric vehicles to be delivered to noteworthy customers in Japan, Amazon and Hana Cupid.
Cenntro Chief Executive Officer, Peter Wang, is excited about Japan’s future home delivery prospects due to the country’s ageing population. With the increase in electric vehicle demand from Japan alone, Cenntro currently planning to build a local assembly plant for the local production and delivery of commercial EVs.
When discussing Toyota Motor Corps exploration of hydrogen as a future clean-car fuel, Wang stated that “EVs are still a cheaper option than hydrogen. They’re convenient, easy to use, easy to fix, easy to charge. I’ve talked to a lot of fleet managers in Japan and they couldn’t find the proper vehicle to do it.” Enters Cenntro.
The Company has also experienced strong demand from its European and American customers for its new models, as the Cenntro Logistar 200 light urban delivery vehicle was launched in 2021 and 628 units were delivered to European buyers in December alone.
In order to facilitate the rising production targets, Cenntro has invested $25 million into a 100,000-square-foot facility in Jacksonville, Florida, which will take over the production of the company’s line of delivery and logistics trucks and vans in early 2022. It is estimated that the complex will be able to produce more than 50,000 vehicles per year within four years and can be expanded to facilitate additional operations.
Conveniently, the warehouse is located in close proximity to the port of Jacksonville, enabling swift importing of materials and easy exporting of finished vehicles to any of the 32 countries that Cenntro currently delivers vehicles in.
As of September 2021, Cenntro Holding owns a 59.2% stake in Greenland Technologies, a leading transmission and drivetrain systems provider for material handling equipment, such as forklift trucks for industrial and logistics applications.
How does it all sum up?
The future looks bright for Cenntro Electric Group and the NAKD Army. While the whole stock market was crashing, Peter Wang and his team were working tirelessly on expanding Cenntro Electric Group and conquering the electric vehicle market.
CENN currently has a market cap of $445.45 M and a stock price of < $2.
Numerous ‘Fair Value’ estimations valued NAKD at over $2,500 per share, but the price of CENN is currently reflected by a single digit. I believe it is only a matter of time before CENN follows in the footsteps of AMC and Gamestop, but only time will tell.
Is CENN currently at a heavily discounted price, or will be this be a tale of the crooked institutions defeating the valiant army of retail investors?
Leave your thoughts in the comments below.
Want to keep digging into the electric vehicle manufacturer? Check out these well presented and informative videos from Rip N Dip Traders.