Business Context and Reporting Period
This Form 6-K filing by Naked Brand Group Limited (trading as "NAKD") covers the month of May 2020. The registrant is a foreign private issuer based in New Zealand. The filing serves as a notice of failure to satisfy a Nasdaq continued listing rule regarding stockholders' equity.
Key Financial Metrics
The filing does not provide current revenue, profit, cash flow, or debt figures for the period ending May 2020. However, it references historical data from the Annual Report on Form 20-F for the year ended January 31, 2020:
- Stockholders' Equity: US$(4,073,603) (Negative equity).
- Nasdaq Equity Standard Requirement: Minimum of US$2,500,000.
The filing text does not provide a clear value for current liquidity, margins, or debt levels as of May 2020.
Material Changes and Listing Status
The primary material event is the receipt of a notice from Nasdaq on May 14, 2020, stating the Company is no longer in compliance with Nasdaq Listing Rule 5550(b)(1) due to negative stockholders' equity. Additionally, the Company remains non-compliant with the minimum bid price requirement of $1.00, a notice received on March 11, 2020.
Outlook, Risks, and Management Commentary
Compliance Timeline:
- Equity Standard: The Company has 45 calendar days (until June 29, 2020) to submit a plan to regain compliance. If accepted, an extension of up to 180 days may be granted.
- Minimum Bid Price: The Company has until November 23, 2020, to regain compliance with the $1.00 minimum bid price.
Management Action: Management states it is "diligently pursuing all available options to increase its stockholders' equity." If the compliance plan is rejected, the Company intends to appeal to a Nasdaq Hearings Panel.
Trading Status: The notifications have no immediate effect on the listing; shares continue to trade uninterrupted under the symbol "NAKD."
Investor Verification Checklist
- Verify the Company's ability to submit a compliance plan to Nasdaq by June 29, 2020.
- Monitor the outcome of the appeal process if the initial compliance plan is rejected.
- Review the Annual Report on Form 20-F for the year ended January 31, 2020, for detailed financial context regarding the negative equity position.
- Track the stock price to ensure compliance with the $1.00 minimum bid price requirement by November 23, 2020.