Creatd Closes First Tranche of OG Collection Sale and Retains Sichenzia Ross Ference LLP for Planned Subsidiary Spin-off to its Shareholders

Rhea-AI Summary

Creatd, Inc. (OTCQB: CRTD) has announced the completion of its first tranche of private financing for its media subsidiary, OG Collection, Inc., capturing 7.5% of its equity. The OG Collection, valued between $15MM to $20MM, is expected to go public in Q1 2023. Creatd has retained Sichenzia Ross Ference LLP for the spin-off, ensuring only shareholders of record will receive shares in the new entity. The company is also exploring additional strategies for other subsidiaries, aiming to enhance shareholder value.

Positive

• Successfully closed the first tranche of financing for OG Collection, raising 7.5% equity.
• OG Collection's valuation confirmed between $15MM and $20MM, indicating significant asset value.
• Plans to complete spin-off of OG Collection by end of Q1 2023, which may unlock further shareholder value.

Negative

• Concerns about the execution risks surrounding the spin-off process.
• Dependence on successful appraisal and planned strategies for capital generation.

• Creatd retains Sichenzia Ross Ference LLP, with expertise in public listings, spin-offs, and structured products.
• Creatd closes its first tranche of private financing for its media subsidiary, OG Collection, Inc.
• The Company expects to complete the spin-off at the end of Q1 2023.

NEW YORK, Dec. 15, 2022 /PRNewswire/ -- Creatd, Inc. (OTCQB: CRTD) ("Creatd" or the "Company"), today announced that it has closed the sale of 7.5% of the equity interests of its subsidiary, OG Collection, Inc. (the "OG Collection"), its acclaimed media archive capturing some of the most iconic publications and people of the 20th century. As previously discussed, the Company intends to sell up to 25% of the subsidiary ahead of its expected listing on the OTC in the first quarter of 2023. The Company has also disclosed the results of its recent appraisal, which affirmed a valuation of the OG Collection subsidiary, including all intellectual property, trademarks, licensing, and physical assets, at between $15-20MM.

The Company has retained Sichenzia Ross Ference LLP as lead counsel overseeing the OG Collection spin-off. A record date will be set prior to the distribution of the spun-out shares of OG Collection, Inc. Only those shareholders that can demonstrate physical ownership as of such record date will be entitled to the new security.

Commented Chairman and CEO, Jeremy Frommer, "We will not stop generating long-term value for our shareholders. I will personally ensure that only physical shareholders of record will be distributed shares in the NewCo. My intention is to apply for the ticker 'OGCL' and complete the spin-off by the end of Q1 2023. There is tremendous value to unlock in this asset and we have the right team to do it. There are a number of further exciting developments for this company that we will be announcing over the upcoming 30 days."

Continued Mr. Frommer, "Presuming the technical strategy surrounding the OG Collection spin-off is successful, we will be well-positioned to repeat the same tactical steps for another Creatd subsidiary, our consumer products business division, Creatd Ventures. Included in Creatd Ventures' portfolio are the following brands: Dune, Basis, Brave, and Camp. I have already begun preliminary discussions regarding a spin-out or merger of the Creatd Ventures assets with new companies. This should create an even more powerful fundamental buy-in on the shorts and repel their manipulative behaviors."

About Creatd

Creatd, Inc. (OTCQB: CRTD) is a company with a mission to provide economic opportunities to creators and brands by multiplying the impact of platforms, people, and technology. 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.

FAQ

What is the latest news regarding Creatd (CRTD) and its spin-off?

Creatd has closed its first tranche of financing for OG Collection and is set to spin off the subsidiary by the end of Q1 2023.

What is the current valuation of Creatd's OG Collection (CRTD)?

The OG Collection has been appraised with a valuation between $15 million and $20 million.

Who is overseeing the spin-off process for Creatd (CRTD)?

Sichenzia Ross Ference LLP has been retained as lead counsel for the spin-off of the OG Collection.

When will shareholders receive shares from the OG Collection spin-off (CRTD)?

A record date will be set before shares are distributed to shareholders demonstrating ownership.