(Filed Under Financial and General Interest News). Naked Brand Group investors holding warrants, including Carole Hochman, chairwoman and son David Hochman, vice-chairman, have exercised those warrants with the company receiving approximately $2.34 million in new funds.
Naked said it “plans to use the net proceeds from the offering to fund ongoing operations, including the company’s efforts to accelerate sales and distribution of its men’s collection, to launch and establish sales and distribution for its women’s collection, to develop additional product lines, including its recently announced Dwyane Wade signature collection which Naked expects to launch in 2016, to implement marketing and brand awareness campaigns, and to explore opportunities to establish international distribution relationships and other strategic partnerships for the company.” The transaction was announced during the first week in August.
The company added that proceeds will help it “increase stockholders’ equity, which, along with other changes to its capital structure that Naked intends to complete, is necessary to further the company’s goal to pursue a listing of its common stock on a national securities exchange such as Nasdaq or NYSE MKT.”
One of the steps undertaken by the company to that end in mid-August was a “1-for-40 reverse split of its common stock” which raised its share price from well under 20 cents, where it had been trading for months, to $6.74 on August 12.
“I am thrilled with the exceptional support we have received from our investors,” which include her and her son, said Carole Hochman. “I am so proud of our team and all we have accomplished in the past year. We anticipate that the year ahead will be even more exciting and productive for Naked as we focus on revenue growth, launching innovative marketing campaigns and delivering outstanding, new products to our customers.”
The company reported that “In connection with the offering, warrant holders elected to exercise a total of 23,427,779 of their $0.15 warrants at a reduced exercise price of $0.10 per share, providing a total of $2,342,777 in gross proceeds to the company. This amount includes the exercise of 8,210,004 warrants in aggregate for a total of $821,000 by Carole Hochman, David Hochman, vice chairman of Naked, and Nico Pronk, CEO of Noble Financial Capital Markets, on the same terms as the warrant offering on July 7, 2015. Noble Financial Capital Markets acted as the company’s warrant solicitation agent for the offering.
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