Creatd, Inc. Benefits from Substantial Debt Conversion and Warrant Exercise Activity During July 2021

Rhea-AI Summary

Creatd, Inc. (Nasdaq CM: CRTD) announced a major reduction in outstanding short-term debt and aged payables, totaling around $1.45 million, funded by a capital raise completed in June 2021. Approximately $3.5 million of long-term convertible notes were converted into stock at $5.00 per share, above market price. Remaining debt stands at about $1.68 million, including a $262,000 PPP loan due May 2022. The company has over $5 million in working capital and potential fundraising of $32 million if outstanding warrants are exercised.

Positive

• Reduction of outstanding short-term debt and aged payables by approximately $1.45 million.
• Conversion of $3.5 million in convertible notes into stock at $5.00 per share, above market price.
• Remaining debt is manageable at approximately $1.68 million.
• Over $5 million in available working capital.
• Potential for $32 million in capital if all outstanding warrants are exercised.

Negative

• Remaining debt includes a $262,000 PPP loan due in May 2022, which must be monitored.

FORT LEE, N.J., Aug. 2, 2021 /PRNewswire/ -- Creatd, Inc. (Nasdaq CM: CRTD) ("Creatd" or the "Company"), the parent company of Vocal, today announced that it has repaid a significant majority of its outstanding short-term debt and all aged payables, totaling approximately $1.45 million, from the proceeds of the Company's capital raise completed in June 2021. In addition, $3.5 million of the Company's outstanding notes, comprising approximately 75% of long-term convertible notes, were recently converted into shares of the Company's common stock at $5.00 per share, above market price. Moreover, during July 2021, the Company received cash proceeds of approximately $4.2 million from the exercise of warrants at a price of $4.50, also above market.

The Company is approaching debt-free status as its remaining debt totals approximately $1.68 million, which consists of a Government Payroll Protection Program ("PPP") loan totaling $262,000, due May 2022, that carries interest of 1%; a $660,000 note related to the acquisition of Seller's Choice; and the majority of the remaining balance in a long-term convertible note.

Commented Creatd CEO Jeremy Frommer, "During July, we made great progress towards our objective of strengthening our balance sheet. With top line growth, manageable debt, and a healthy cash level, we have no immediate need to raise additional funds. We currently have over $5 million in available working capital, consisting of cash and prepayment of third quarter product development costs, as well as over 6.5 million warrants outstanding, the majority of which are exercisable at $4.50. If all outstanding warrants were exercised it would generate approximately $32 million of capital for the Company."

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

Any statements that are not historical facts and that express, or involve discussions as to, expectations, beliefs, plans, objectives, assumptions or future events or performance (often, but not always, indicated through the use of words or phrases such as "will likely result," "are expected to," "will continue," "is anticipated," "estimated," "intends," "plans," "believes" and "projects") may be forward-looking and may involve estimates and uncertainties which 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 any such forward-looking statements. Further, any forward-looking statement speaks only as of the date on which such statement is made, and we undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of anticipated or unanticipated events or circumstances. New factors emerge from time to time, and it is not possible for us to predict all of such factors. Further, we cannot assess the impact of each such factor on our results of operations or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. This press release is qualified in its entirety by the cautionary statements and risk factor disclosure contained in our Securities and Exchange Commission filings.

View original content to download multimedia:https://www.prnewswire.com/news-releases/creatd-inc-benefits-from-substantial-debt-conversion-and-warrant-exercise-activity-during-july-2021-301346361.html

SOURCE Creatd, Inc.

FAQ

What financial improvements did Creatd (CRTD) report in August 2021?

Creatd reported a reduction in short-term debt and aged payables by approximately $1.45 million, and converted $3.5 million of convertible notes into shares.

What is the current remaining debt of Creatd (CRTD)?

Creatd's remaining debt totals approximately $1.68 million, which includes a $262,000 PPP loan among other notes.

How much working capital does Creatd (CRTD) have?

Creatd has over $5 million in available working capital, with additional potential capital from outstanding warrants.

What is the potential capital generation from warrants for Creatd (CRTD)?

If all outstanding warrants are exercised, Creatd could generate approximately $32 million in capital.