Creatd To Increase Ownership in Dune and WHE in All-Stock Transactions Priced Above Market

Rhea-AI Summary

Creatd, Inc. (Nasdaq CM: CRTD) announced plans to acquire additional shares in its subsidiaries Dune, Inc. and WHE Agency, Inc. via all-stock transactions priced above market value. The Company aims to enhance its ownership stake to 70% in Dune and 61% in WHE, improving its balance sheet and positioning itself for potential future asset spin-offs. The deal with Dune involves a purchase of 20% for approximately $360,000 in common stock at $1.32 per share, while a similar deal with WHE will also involve a 17% stake for the same purchase price.

Positive

• Increased ownership stake in Dune to 70% and WHE to 61%, enhancing control over subsidiaries.
• All-stock transactions priced above market value, potentially benefiting shareholders.

Negative

• None.

• Company signs MOUs for all-stock deals to increase ownership stake in Dune, Inc., and WHE Agency, Inc., respectively
• The intended above-market transactions would work to strengthen the Company's balance sheet as well as help ready the Company for any potential asset spin-offs.

NEW YORK, Aug. 18, 2022 /PRNewswire/ -- Creatd, Inc. (Nasdaq CM: CRTD) ("Creatd" or the "Company"), a creator-first holding company, today revealed its plans to purchase additional shares in two of its subsidiary companies, Dune, Inc. ("Dune") and WHE Agency, Inc. ("WHE"). Following the close of the proposed transactions, the Company's ownership stake in Dune would increase to 70%, and its ownership stake in WHE would increase to 61%, thereby improving the Company's balance sheet, while at the same time helping to ready the Company to explore a variety of future financing opportunities, including the potential spin-off of certain Creatd assets. 

Under the terms of the Memorandum of Understanding (MOU) signed with Dune, Creatd will purchase an additional 20% ownership stake in exchange for approximately $360,000 in Creatd common stock at a price of $1.32 per share, or approximately 270,000 shares. Under the terms of the MOU signed with WHE, the Company will purchase an additional 17% ownership stake in exchange for approximately the same purchase price.

About Creatd

Creatd, Inc. (Nasdaq CM: CRTD) is a creator-first technology holding company and the parent company of the Vocal platform. Our mission is to empower creators, entrepreneurs, and brands through technology and partnership. We accomplish this through Creatd's four business pillars: Creatd Labs, Creatd Partners, Creatd Ventures, and Creatd Studios.

Creatd: https://creatd.com;

Creatd IR: https://investors.creatd.com;

Vocal Platform: https://vocal.media;

Investor Relations Contact: ir@creatd.com

Forward-Looking Statements

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SOURCE Creatd, Inc.

FAQ

What are the key details of Creatd's recent press release?

Creatd plans to increase its ownership in Dune to 70% and WHE to 61% through all-stock transactions, each valued at approximately $360,000.

How does the transaction affect Creatd's financial position?

The transactions are expected to strengthen Creatd's balance sheet and prepare it for future financing opportunities.

What is the stock price at which Creatd is acquiring shares in Dune and WHE?

Creatd is acquiring shares at $1.32 per share.

When was the press release issued regarding the transactions?

The press release was issued on August 18, 2022.

What is the significance of the Memorandum of Understanding (MOU) signed with Dune and WHE?

The MOU facilitates the purchase of additional ownership stakes, crucial for enhancing the Company's control and future financing options.