Investing.com -- Xcel Brands Inc (NASDAQ: XELB ) shares surged 39.3% following a report by WDD of a strategic investment by Shanghai-based United Trademark Group (UTG). The $9 million investment by UTG, a significant player in brand development and licensing, is aimed at expanding Xcel’s global reach, particularly in Europe, the Middle East, and Asia.
Xcel Brands, known for building influencer brands through livestreaming and social commerce, sees this partnership as a crucial step in becoming a global powerhouse. According to WDD, Xcel CEO Robert W. D’Loren emphasized the strategic importance of the deal, stating that it "positions us nicely as we continue to announce more of these creator-type brands." The investment has not only helped Xcel refinance its debt but also provided additional working capital, with UTG receiving warrants at various strike prices.
The collaboration is expected to capitalize on UTG’s distribution networks and supply chain expertise, while also potentially leading to joint brand acquisitions. UTG, with a $2 billion valuation, brings to the table a master license for Jeep in China and ownership of the Roberta Di Camerino brand, among other assets.
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