Naked Brand's (NAKD) stock price rose Friday after the swimwear and intimate apparel company said that Ault Global Holdings had purchased more than 41 million of its shares. By the close of trading, Naked Brand was up 2.2% after rising as much as 24.2% earlier in the day.
Ault Global bills itself as a diversified holding company that invests in "undervalued assets and disruptive technologies with a global impact." It often takes an activist approach. "We purchase companies we believe we can operate more effectively than incumbent management," the company says on its website.
Ault Global's shares give it a 6.4% stake in Naked Brand. It's unclear if the investment firm intends to propose strategic initiatives to Naked Brand's leadership team or plans to take a more passive approach.
Naked Brand's stock got caught up in the trading frenzy in so-called meme stocks earlier this year when traders hyped up certain companies on social media sites like Reddit in hopes of driving up their prices. From its lows near $0.07 in November, Naked Brand's shares soared as high as $3.40 by late January, before surrendering much of those gains.
Management took the opportunity to sell shares to investors, raising $270 million in the process. That allowed Naked Brand to pay off all of its debt and bolster its cash reserves. The company intends to use this newfound cash to accelerate its transition from brick-and-mortar stores to a fully online business.