Creatd Raises $800,000 in a Registered Direct Offering off the Company's Shelf
NEW YORK, Sept. 19, 2022 /PRNewswire/ -- Creatd, Inc. (OTCPK: CRTD) ("Creatd" or the "Company"), a creator-first holding company, today announced a $800,000 registered direct offering off the Company's shelf (the "Offering"). The Company is actively executing a holistic restructuring plan with the primary objective of reducing operating expenses while raising the necessary capital to scale the business and recover shareholder value.
Under the terms of the Offering, the majority of the Company's convertible debt has extended its maturity to March 31st, 2023, and reset the conversion price and exercise price of the associated Warrants. This extension by the participants in the Offering gives the Company ample time to complete its strategic restructuring and progress its ongoing discussions on the sale of certain assets and the spin-off of its media library, the OG Collection. The Company and holders of the convertible debt have entered into a definitive agreement for the sale of 4 million shares of Common Stock with attached Warrants to purchase 4 million shares of Common Stock, with such attached Warrants having a 5-year term and an exercise price of $0.20 per share. The purchase price for one share of Common Stock and one Warrant is $0.20. The common shares sold in this transaction will be registered under the Company's outstanding registration statement on Form S-3.
Commented Creatd's Chairman and CEO Jeremy Frommer, "Today's announcement, as well as other prospective financing opportunities under review, are part of a concerted effort to secure the capital structure of the firm and continue to grow revenues as well as develop our proprietary technology. At the same time, we have implemented a robust austerity program over the last several weeks which includes a 40% decrease in headcount, as well as a considerable reduction of salaries for current employees on a go-forward basis. In addition, we have eliminated some of our operating expenses by implementing cost-cutting efforts driven by technology and have negotiated favorable terms with our vendors to weather periods of financing volatility."
Continued Mr. Frommer, "Our team remains confident in our core business and the value of the assets that we have created and believe that the current stock price is not reflective of the Company's intrinsic value. We look forward to further updating our shareholder community on our progress in that endeavor."
Investors can find information on the OTC Market and its various tiers at www.otcmarkets.com.
Creatd, Inc. (OTCPK: CRTD) is a company with a mission to provide economic opportunities to creators and brands by multiplying the impact of platforms, people, and technology. The Company has four main business segments, or 'pillars': Creatd Labs, which houses Vocal and Orbit LLC.; Creatd Ventures, operating its portfolio of e-commerce brands, Dune, Camp, Basis and Brave; Creatd Studios, which oversees the Company's fine art collection the OG Gallery; and Creatd Partners, housing the WHE Agency and our brand activation strategies. Creatd's pillars work together to create a flywheel effect, supporting our core vision of creating a viable and safe ecosystem for all stakeholders in the creator economy.
Creatd: https://creatd.com;
Creatd IR: https://investors.creatd.com;
Vocal Platform: https://vocal.media;
Investor Relations Contact: ir@creatd.com;
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SOURCE Creatd, Inc.
