Creatd Announces Intent to Acquire Brave, Completes $2.15M Above Market Financing

Like other brands in the Creatd Ventures portfolio–Camp, Dunesand Base–Brave started with a creator and a problem to solve. The world was grappling with conventional breakfast options that pit nutrition against convenience. Brave was designed to break that mold and emerged to provide consumers with a better and healthier superfood breakfast.

Commented Thomas Punchhead of Creatd Ventures, “Brave has all the characteristics of an ideal acquisition candidate for our portfolio of brands: a consumer health and wellness brand, with a subscription-oriented business model, that meets a demand growing among a loyal base of repeat consumers.Between our shared resource model and audience insights gleaned from Vocal and our brand collaborations, we believe Creatd Ventures offers a significant value proposition for emerging brands like Brave. Here, we help creators become entrepreneurs and empower them to unlock scale while growing sustainably.”

In addition, Creatd announced today that it has entered into definitive agreements for a private placement in the aggregate principal amount of $2.15 million (the “Private Placement”). Pursuant to the private placement, the Company agrees to sell and issue initial issue discount convertible debentures and warrants to purchase common shares. The Debentures will be issued at an initial issue discount of 10%, resulting in gross proceeds of approximately $1.9 millionhave a maturity date of November 30, 2022which may be extended by six months at the option of the Company, and are convertible into ordinary shares of the Company at the conversion price of $2.00 per share. Many of the Company’s long-time investors participated in the transaction.

Pursuant to the private placement, Creatd will also issue 1,075,000 warrants to purchase common shares with an initial exercise price of $3.00 per share, and 1,075,000 common stock purchase warrants with an initial exercise price of $6.00 per share, both for a term of five years. The debenture conversion price is equal to the price per unit of the company’s forthcoming rights offering made pursuant to the company’s effective registration statement on Form S-1 (File No. 333-265251) . In addition, the two warrants offered under the private placement have exercise prices equal to those included in the rights-bearing units.

The private placement is expected to close on or about July 25, 2022subject to satisfaction of customary closing conditions.

Comments the Executive Chairman of Creatd Jeremy Frommer“As we communicated, both in our new update Expansion plan platform as well as in the management presentation to last week’s investor day, a central aspect of Creatd’s expansion strategy involves that we continue to seek acquisitions that align with and complement the brands of our existing Ventures portfolio. Brave is the latest example of this strategy coming to fruition, while continuing to develop our future target pipeline and pursuing active discussions with a number of other potential candidates. Given the momentum evident in all of Creatd’s business pillars, we believe our decision to take advantage of this funding opportunity was prudent, allowing the company to keep its foot on the accelerator pedal and continue to follow our rapid rate of growth. »

Frommer continued, “We would also like to remind all existing and potential Creatd shareholders of our rights offering schedule, as well as the next ownership deadline this Wednesday July 27 at 4 p.m. ET. This is the deadline by which you must purchase Creatd securities to be considered a registered shareholder on the record date. I hope that as the record date and the start of the subscription period approach, trading in the publicly tradable warrants will begin soon.”

The Company has confirmed the following timeline in connection with the 2022 Rights Offering:

Wednesday,
July 27

Date of ownership – Securities must be acquired before the market closes at 4:00 p.m. ET to be considered a registered shareholder on the record date

Thursday,
July 28

Ex-Right Date, CRTD & CRTDW will trade on that day without the rights attached.

Friday, July
29

Date of registration of the rights offering

Wednesday,
August 8

Start of subscription period – Shareholders can start subscribing or oversubscribing to the rights offering

Wednesday,
August 22

Subscription period ends at 5:00 p.m. ET, unless extended at Company’s sole discretion

This press release does not constitute an offer to sell or the solicitation of an offer to buy these securities, and there will be no sale of these securities in any state or other jurisdiction in which such offer, solicitation or sale would be illegal.

About creation

Creatd, Inc. (Nasdaq CM: CRTD) is a company dedicated to unleashing the creativity of creators, brands and consumers. We achieve this through the four business pillars of Creatd: Creatd Labs, Creatd Partners, Creatd Ventures and Creatd Studios.

Created: https://creatd.com;

IR created: https://investors.creatd.com;

Voice platform: https://vocal.media;

Contact with Investor Relations: [email protected]

Forward-looking statements

All statements that are not historical facts and that express or imply discussions of expectations, beliefs, plans, goals, assumptions, or future events or performance (often, but not always, indicated by use words or phrases such as “probable outcome”, “should”, “will continue”, “is expected”, “estimates”, “intends”, “plans”, “believes” and “projects”) may be forward-looking and may involve estimates and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements. We caution that the factors described herein could cause actual results to differ materially from those expressed in any forward-looking statements we make and that investors should not place undue reliance on such forward-looking statements. Further, any forward-looking statements are not only as of the date such statement is made, and we undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date such statement is made or to reflect the occurrence of foreseen or unforeseen events or circumstances. New factors emerge from time to time and it is impossible for us to predict all of these factors. Further, we cannot assess the impact of each of these factors on our results of operations or the extent to which any one factor, or combination of factors, could cause actual results to differ materially from those contained in forward-looking statements. This press release is qualified in its entirety by the warnings and disclosure of risk factors contained in our filings with the Securities and Exchange Commission.

SOURCE Created, Inc.

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