Abbotsford-founded Naked Brand Group (Nasdaq:NAKD) started trading on the Nasdaq Stock Market December 18 and closed down 0.5%, at US$3.98.
Gross proceeds of its offering are US$7.5 million and the company expects to keep about $6.9 million of that, after deductions for underwriting discounts and commissions.
Its underwriters – Noble Financial Capital Markets and Dawson James Securities – have the option to purchase an additional 281,250 shares at US$4 each. So, gross proceeds from the offering could jump to US$8,625,000.
Naked largely sells underwear to resellers such as Nordstrom, Bloomingdale’s, Dillard’s, Hudson Bay, Holt Renfrew, Amazon.com and BareNecessities.com.
Founder Joel Primus launched the venture in 2009, not long before he pitched the venture to investors on the CBC show Dragon’s Den.
He convinced investor Arlene Dickenson to offer to buy half of the company for $75,000 if the other “dragons” would chip in another $75,000. They did not and Primus walked away empty-handed.
(Joel Primus founded Naked Brand Group in 2009)
Aviation consultant Ross Brown saw the show and was impressed enough to invest in the company .
Brown introduced Primus to WestJet Airlines Ltd. (TSX:WJA) co-founder Tim Morgan, who then also invested money in Primus’ venture.
Sales quickly expanded to more than $100,000 annually in 2011.
Primus opened a distribution centre in Los Angeles in 2012 and told Business in Vancouver at the time that he planned to first take the company public via a reverse takeover on the loosely regulated OTCBB exchange and then to be on the Nasdaq by the end of 2013.
Last year, Naked closed a $7.3 million private placement , which gave it the ability to invest in marketing and new product development.
The new money came as the company adjusted to having a new management team headed by CEO Carole Hochman, and including CFO Michael Flanagan and vice-president of sales and marketing Carlos Serra.
Hochman’s goal, according to Naked’s website, is to become “a global lifestyle brand for both women and men.”
That will include a shift into non-underwear categories such as activewear, swimwear and sportswear.
The company is now headquartered in New York City.
