Shares Of Lingerie Company Naked Group Pop 28% On Acquisition Of AI Autonomous Driving Company, Plans To Change NameZeroHedge News

Shares Of Lingerie Company Naked Group Pop 28% On Acquisition Of AI Autonomous Driving Company, Plans To Change Name

Everybody is gunning for a piece of the market’s EV momentum right now. 

The latest instance was this morning, when shares of Naked Brand Group – formerly described as a “specialist digital intimate apparel and swimwear business focussed exclusively online” rocketed in pre-market trading on Tuesday after the company announced after hours Monday that it had entered into a merger agreement with Cenntro Automotive Group, which it describes in its press release as “an early pioneer in Artificial Intelligent  Autonomous Driving and a leading designer and manufacturer of electric light and medium-duty commercial vehicles.”

Shares were up 28% on Tuesday morning,

As a result of the merger, the new company is going to be called “Cenntro Automotive Group”, but will still trade under the NAKD ticker. 

The company said in its press release that Cenntro has “sold and delivered more Commercial Electric Vehicles than any other EV company; Customers are estimated to have traveled more than 20 million miles in 26 Countries in Cenntro EVs”.

Cenntro will also bring a financial contribution to the company with expected revenue of $25.3 million in 2021 as a result of over 1,500 vehicle sales. NAKD predicts $506 million in sales on 21,500 vehicles in 2022. NAKD did $54.2 million in revenue in the ttm period prior to the acquisition.

The PR says of Cenntro:

Founded in 2013, Cenntro has produced and delivered over 3,300 commercial electric vehicles, more commercial electric vehicles than any other EV manufacturer. Its scalable, decentralized production model allows it to grow production without many of the associated infrastructure costs incurred by other EV companies. It expects significant growth over the next five years, with EV sales forecast to reach $2.1 billion by 2023. The company expects to generate 2021 revenue of $25.3 million on sales of 1,500 vehicles, 2022 revenue of $506 million on sales of 21,500 vehicles and 2023 sales of 74,800 vehicles. Cenntro has excellent visibility into future revenue through a strong backlog of orders. The company plans to scale production in January 2022, through new facilities both in Jacksonville, Florida and Dusseldorf, Germany.

Justin Davis-Rice, Chairman and Chief Executive Officer of Naked Brand Group said: “After assessing numerous companies with promising, innovative technologies, we believe Cenntro offers the most compelling opportunity, as it not only has unique commercial EV technology, but has proven that it has been able to manufacture and deliver growing numbers of commercial electric vehicles that are being used by many of the leading consumer companies. Together with Cenntro’s outstanding vehicle pipeline, I believe the combined company will give our shareholders the opportunity to participate in a company that has reached an inflection point in its development that together with the Naked Brand Group balance sheet, will produce tremendous growth.”

Peter Wang, Cenntro’s Chairman, said: “We looked at many options for going public. While we confidentially submitted a draft S-1 to go public via an IPO, we came to believe that Naked allowed us to go public faster, providing the working capital to support our substantial backlog. However, beyond capital, we felt the opportunity to gain such a loyal and enthusiastic shareholder base, such as the “Naked Army” and its other shareholders, was something that no IPO could achieve. We look forward to sharing many exciting developments in the coming months as we scale our deliveries.”

Tyler Durden
Tue, 11/09/2021 – 08:45Read More

Leave a Reply