Creatd Announces its Intent to Purchase DTC Home Improvement Company, Wobble Wedge®

Rhea-AI Summary

Creatd, Inc. (Nasdaq CM: CRTD) has announced a non-binding Memorandum of Understanding to acquire a 55% equity stake in Wobble Wedge®, a direct-to-consumer home improvement company. The deal, which involves cash and stock, is expected to be finalized in early Q4 2021. Creatd anticipates that the acquisition will be accretive to EBITDA, generating estimated net revenues of $1.5 to $1.7 million over the next 12 months. Wobble Wedge® products are produced in the U.S. and sell up to 1 million units monthly, catering to various user types.

Positive

• Creatd to acquire 55% stake in Wobble Wedge, expected to enhance e-commerce portfolio.
• Projected net revenues from Wobble Wedge acquisition estimated at $1.5 to $1.7 million within 12 months.
• Acquisition anticipated to be immediately accretive to EBITDA.

Negative

• None.

FORT LEE, N.J., July 29, 2021 /PRNewswire/ -- Creatd, Inc. (Nasdaq CM: CRTD) ("Creatd" or the "Company"), the parent company of Vocal, today announced that it has entered into a non-binding Memorandum of Understanding ("MOU") to purchase a majority stake in direct-to-consumer company, Wobble Wedge®, which has disrupted the home improvement category with its eponymous, multi-patented product. Wobble Wedges®, sold through both direct-to-consumer (DTC) and wholesale avenues, are an interlocking modular system of tapered shims that are adaptable to hundreds of uses. The Wobble Wedge has become a staple tool for a wide range of user types, from homeowners to craftspeople, hobbyists, restaurant owners, plumbers, and more.

Pursuant to the MOU, Creatd intends to acquire a 55% equity stake in Wobble Wedge, in exchange for a combination of cash and stock. The Company expects to execute definitive agreements in early fourth quarter 2021 and to close shortly thereafter, subject to the completion of due diligence and other closing conditions. After closing, Creatd will begin to recognize Wobble Wedge's revenues in its consolidated financial statements.

Commented Creatd CEO, Jeremy Frommer, "I am thrilled about this opportunity to add Wobble Wedge to Creatd's e-commerce portfolio and to integrate their incredible management team. After closing, we expect the transaction to be immediately accretive to EBITDA and generate between $1.5 - $1.7 million in net revenues over the next 12 months."

Co-CEO Skip Wehner said, "Wobble Wedge was founded with the express intention to be a large-scale brand in the commercial and home improvement space. For years we have been on the lookout for the ideal opportunity to accelerate our mission. The Creatd team is exactly what we were looking for, and we could not be more excited about the chance to grow with them."

Wobble Wedge was first invented when creator Robert Bellows—the uncle of Mr. Wehner and a metal sculpture artist by trade—set out to design a household product that would be scalable, low cost, and that solved a universal problem: wobbly tables. What resulted was the prototype for the Wobble Wedge, which was subsequently refined through trial and error into the patented design still in use today. To this day, Wobble Wedges are made entirely in the United States, selling between 800,000 to 1,000,000 wedges per month.

About Creatd

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

For news and updates, subscribe to Creatd's newsletter: https://creatd.com/newsletter

Investor Relations Contact:
ir@creatd.com

Forward-Looking Statements

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SOURCE Creatd, Inc.

FAQ

What is Creatd's plan for Wobble Wedge?

Creatd intends to acquire a 55% equity stake in Wobble Wedge, aiming to enhance its e-commerce portfolio.

What are the expected revenues from the Wobble Wedge acquisition?

Creatd expects the Wobble Wedge acquisition to generate between $1.5 and $1.7 million in net revenues over the next 12 months.

When does Creatd expect to close the acquisition of Wobble Wedge?

Creatd anticipates closing the acquisition in early fourth quarter 2021, subject to due diligence and closing conditions.

How many Wobble Wedges are sold monthly?

Wobble Wedge products sell between 800,000 and 1,000,000 units monthly.