Upon signing the agreement, LPC invested $300,000 in Naked at a price of $0.50 per share as an initial purchase under the agreement. In addition, during the 24-month term of the purchase agreement the Company, at its sole discretion, has the right to additionally sell to LPC up to an aggregate of $8 million of its common stock, in certain amounts and subject to certain conditions, which includes the effectiveness of a registration statement with the U.S. Securities and Exchange Commission (“SEC”) covering the sale of the shares that may be issued to LPC.
The Company controls the timing and amount of any future investment and LPC is obligated to make purchases, if and when the Company decides in accordance with the purchase agreement
There are no upper limits to the price LPC may pay to purchase Naked common stock and the purchase price of the shares related to any future investments will be based on the prevailing market prices of the Company’s shares immediately preceding the notice of sale to LPC.
LPC has agreed not to cause or engage in any manner whatsoever, any direct or indirect short selling or hedging of the Company’s shares of common stock. In consideration for entering into the agreement, the Company has issued shares of common stock to LPC as a commitment fee.
The agreement may be terminated by the Company at any time, at its sole discretion, without any monetary cost. The proceeds from this investment will be used for inventory purchases and other working capital requirements.
“The initial investment by Lincoln Park Capital as well as the access to additional capital increases our flexibility to increase our inventory levels to meet anticipated growth needs in Quarter 3 and Quarter 4.” said Joel Primus, President & CEO of Naked.
Naked Brand Group
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