Creatd Announces Memorandum of Understanding to Purchase Majority Stake in Direct-to-Consumer Beverage Brand, Dune Glow Remedy

Rhea-AI Summary

Creatd, Inc. (Nasdaq CM: CRTD) has announced the launch of Dune Glow Remedy, a new direct-to-consumer brand focusing on health-oriented beverages. The company plans to acquire a 50.4% equity stake in Dune, anticipated to generate $500,000 to $1 million in net revenues over the next year. The acquisition aligns with Creatd's strategy to build a diverse portfolio of direct-to-consumer brands. The functional beverage market, particularly the 'beauty from within' segment, is experiencing notable growth, with a 360% rise compared to 9% for the broader beverage market.

Positive

• Creatd to acquire a 50.4% stake in Dune for cash and stock, enhancing its consumer brand portfolio.
• Expected net revenues from Dune projected between $500,000 and $1 million over the next year.
• Dune operates in a rapidly growing segment of the functional beverage market, which has increased by 360%.

Negative

• None.

FORT LEE, N.J., Aug. 2, 2021 /PRNewswire/ -- Creatd, Inc. (Nasdaq CM: CRTD) ("Creatd" or the "Company"), the parent company of Vocal, today announced the launch of Dune Glow Remedy ("Dune"), a direct-to-consumer brand focused on promoting wellness through its range of health-oriented beverages. The Company has additionally announced that it has entered into a Memorandum of Understanding ("MOU") to acquire a majority equity stake in Dune.

Pursuant to the MOU, Creatd intends to acquire a 50.4% equity stake in Dune in exchange for a combination of cash and stock. The Company expects to execute definitive agreements early in the fourth quarter 2021 and to close shortly thereafter, subject to the completion of due diligence and other closing conditions. After closing, Creatd will begin recognizing Dune's revenues in its consolidated financial statements. Dune is expected to generate between $500,000 to $1 million in net revenues over the next 12 months.

Commented Creatd CEO Jeremy Frommer, "We are working to finalize our purchase of a majority stake of Dune, as well as that of Wobble Wedge, as announced last week. Together with Plant Camp, Creatd's first acquisition in the e-commerce category, these transactions represent a strong portfolio of majority-owned DTC brands, all of which can benefit from direct access to Creatd's resources, technology, and marketing expertise. We are confident that, with Creatd's support, these brands can materially grow revenues in a cost-efficient, timely, and scalable way, leveraging Vocal's powerful network and first-party data to identify and activate an enthusiastic and loyal consumer base."

The idea for Dune came after its founders, Tom Punch, Stephanie Roy Dufault, and Mark De Luca, identified an opportunity in an emerging area of the functional beverage space: beauty. As a whole, the functional beverage market has risen exponentially, having grown 360% since last year as compared to 9% for the rest of the beverage market, according to Bloomberg. However, the market has seen recent growth particularly in the 'beauty from within' segment, referring to food and drink products specifically designed for cosmetic purposes, suggesting increasing awareness among consumers of the impact of nutrition on one's physical appearance.

Dune's beverages are meticulously crafted with functional ingredients that nourish skin from the inside out and enhance one's natural glow. Explained Ms. Roy Dufault, "The link between inner health and outer beauty has never been so clear. Our unique beauty drink is designed not only to make your skin glow but to foster that magic self-care moment we all deserve."

Tom Punch brings more than a decade of experience of immersion in the creator landscape and unlocking value for high-growth consumer, internet, technology brands. Prior to co-founding Dune, Mr. Punch was a lead executive for YouTube giant WatchMojo, where he was actively involved in strategic partnerships and corporate development. In his time there, Mr. Punch helped turn WatchMojo into one of the leading youth-oriented media brands in North America. Stephanie Roy Dufault has over a decade of communication experience, specifically in the beauty and fashion market, where she developed a keen understanding of brand and influencer partnerships.

Commented Mr. Punch, "As someone who has developed and launched numerous internet consumer brands over the years, I have had unique visibility into the necessity of disruptive marketing. Having the support of Creatd, and access to their extensive resources and expertise, means that an entrepreneur like myself can significantly cut down on cost and time to market, and reach Dune's target consumers faster and with greater impact."

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

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SOURCE Creatd, Inc.

FAQ

What is the Memorandum of Understanding announced by Creatd regarding Dune Glow Remedy?

Creatd announced an MOU to acquire a 50.4% equity stake in Dune Glow Remedy, focusing on health-oriented beverages.

What are the expected revenues from Dune Glow Remedy after the acquisition?

Dune is expected to generate between $500,000 and $1 million in net revenues over the next 12 months.

What market segment is Dune Glow Remedy targeting?

Dune targets the rapidly growing 'beauty from within' segment of the functional beverage market.

When does Creatd expect to finalize the acquisition of Dune?

Creatd expects to execute definitive agreements early in the fourth quarter of 2021.

How does the acquisition fit into Creatd's overall strategy?

The acquisition of Dune supports Creatd's goal of building a portfolio of majority-owned direct-to-consumer brands.