Creatd provides an update on the balance sheet and fundraising activities



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NEW YORK, November 1, 2021 / PRNewswire / – Creatd, Inc. (Nasdaq CM: CRTD) (“Creatd” or the “Company”), the parent company of Vocal, today provided an update on its unaudited balance sheet, recent funding and other financial information. Last week, the company announced the closing of its registered direct offering of 850,000 shares, marked-to-market under Nasdaq rules and selling more than $ 3.4 million in net income to the Company. In addition to financing, the Company recently called on $ 4.4 million in cash through the exercise of warrants. In total, the Company received more than $ 7.8 in cash, significantly strengthening its balance sheet.

Between October 22 and October 29, 2021, the Company saw the exercise of approximately 875,000 common share warrants at an exercise price of $ 4.50, as well as about $ 1.1 million in debt conversions at the price of $ 5.00 per share; with these conversions, the Company has now fully eliminated all remaining debts from its May 2021 offer of convertible notes. After factoring in the above transactions, Creatd now has approximately 16.3 million shares issued and outstanding. In addition, there are currently approximately 3 million private warrants outstanding, the majority of which can be exercised at a price of. $ 4.50, and 2.5 million listed warrants with exercise prices of $ 4.50.

Creatd is pleased to announce that it has now paid off substantially all of the remaining debt on its balance sheet, with the exception of one $ 660,000 note on the acquisition of Seller’s Choice and approximately $ 200,000 in a current PPP loan. To date, the Company has settled most of its outstanding debts, including legal, accounting and technology development costs. The Company also has a credit of approximately $ 500,000 with its development partner, Thinkmill. In addition, the Company awarded $ 1.8 million repay their existing balance in full with third-party marketing platforms, leaving Creatd the option of drawing up to $ 3 million in credit available with long-standing social media partners.

Commented the founder and co-CEO of Creatd, Jeremy Frommer, “After making progress on all of the above debts, as well as closing our recent financing, our business now has more than $ 5 million in cash plus the aforementioned supplier credits to support our strategic growth plans. Having significantly strengthened our balance sheet and reduced our debt from 56% to $ 1.1 million since the end of the third quarter, we are well positioned to execute through the four pillars of Creatd. ”

Frommer continued, “As we move towards our goal of 100,000 Vocal + members, we have been able to significantly reduce our reliance on third-party social media marketing platforms. As a result, we saw a 57% reduction in marketing costs between Q2 and Q3. For the fourth quarter of 2021, we expect costs to market to remain below $ 2 million; apart from marketing costs, we expect overall operating expenses to remain in line with previous quarterly levels.

“We estimate net income for the third quarter to be approximately $ 1.2 million, which is an increase of 24% from the second quarter of 2021 and our fourth consecutive quarter of double-digit growth. In addition, we are currently projecting between $ 1.6 and $ 1.8 million of fourth quarter revenue, a growth rate of 30-50% quarter-over-quarter. “

explained the co-CEO of Creatd, Laurie Weisberg, “Our revenue forecast for the third and fourth quarters of 2021 takes into account the supply chain challenges that have disrupted e-commerce globally. Given these disruptions, we still expect business to Creatd Ventures e-commerce business continues to ramp up and begin to have a significant impact on revenues in the first quarter of 2022. With our third quarter numbers expected to be released on November 15, we look forward to sharing a deeper understanding of Creatd Partners’ agency business and growth, particularly since the acquisition of WHE agency. “

About Creatd
Creatd, Inc. (Nasdaq CM: CRTD) is a technology company focused on the creators and parent company of the Vocal platform. Our mission is to empower creators, entrepreneurs and brands through technology and partnership.

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Investor Relations Contact: [email protected]

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