Why Is Naked Brand Group's Stock Trading Higher Today?

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Naked Brand Group Ltd (NASDAQ:NAKD) is moving higher Friday morning after the company announced final results from its “extraordinary general meeting.”

What Happened: Naked held a meeting of its shareholders on April 23 to vote on the divestiture of its Bendon brick-and-mortar operations. The company announced the final vote was for the proposal, allowing the company to sign the definitive agreement for the divestiture and simultaneously close the transaction on Friday.

The company said the divestiture will transform Naked into an asset-light business positioned to grow into an e-commerce leader in the intimate apparel market.

Related Link: This Penny Stock Is Creeping Up To A Key Technical Level

“Today’s final tally and closing of the Bendon divestiture represents a key milestone in Naked’s corporate history. It has been a very long journey with many challenges that our management team had to overcome from an operational and financing perspective. I strongly believe we did what was best for our shareholders and have now positioned Naked with the necessary capital to drive shareholder value in the coming months and years,” said CEO Justin Davis-Rice.

Why It Matters: Naked has become a popular stock among retail investors in 2021. The stock experienced extreme volatility during the time that members of the subreddit r/wallstreetbets began pushing shares of GameStop Corp (NYSE:GME) higher.

Naked has traded as high as $3.40 and as low as $0.07 over a 52-week period. The stock was up 12.4% at $0.708 at last check Friday.