The intimate apparel and swimwear brand entered a non-binding term sheet to receive a US$25mln investment from European investment firm Sapinda Holdings B.V.
“If completed, this investment will provide us with additional capital to support our plans to complete accretive strategic acquisitions to better utilize our under-leveraged operating infrastructure,” said CEO Justin Rice in the company's press release.
The agreement would include a maximum 19.99% strategic investment from Sapinda through a private placement of up to 5 million newly issued ordinary shares priced at US$5 per share.
The company said that it would use the investment capital for strategic acquisitions as well as direct-to-consumer and e-commerce initiatives.
The company’s brand portfolio includes Naked, Bendon, Heidi Klum Intimates and Heidi Klum Swim.
Naked Brand announced in mid-August that it had begun its two-year rollout strategy to open 20 retail and outlet stores across Australia and New Zealand.
Shares of the Australian company were down more than 4% to US$4.42 in Tuesday Morning trading.