Published on June 19, 2024
Creatd, Inc. (OTCQB: CRTD) (“the Company”), a leader in the development of digital communities, today announced a strategic initiative to auction up to 35% of its ownership in its flagship product, Vocal. Vocal, owned and operated by the Company’s subsidiary, Vocal, Inc., is central to this initiative aimed at leveraging the Company’s improved balance sheet and adapting to the evolving capital markets in the micro and nano-cap space.
Commenting on the decision, Creatd’s CEO stated, “This is the best strategic move for Creatd as we continue to navigate and adapt to new capital market conditions. Our goal is to unlock the intrinsic value held by Creatd, while simultaneously leveraging our equity to acquire minority interests in companies that are aligned with and complementary to Vocal and our other subsidiaries, including those in data, archival, AI, and more.”
The Company has already initiated discussions with two prominent banking groups to facilitate the auction for equity in Vocal. As part of this strategic initiative, the Company will be selecting specific strategic partners, high net worth individuals, long-term investors, and family offices to participate directly. The Company is expected to provide its formal valuation to the bidders in late third quarter 2024. This strategic initiative is expected to unlock significant value for Creatd’s shareholders and position the Company for future growth and expansion in its core areas of expertise.
The proceeds from the auction will be reinvested to further develop, scale, and enhance Vocal, reinforcing Creatd’s commitment to increasing shareholder value and generating sustained revenue growth. This initiative not only benefits Creatd’s shareholders but also ensures that Vocal continues to thrive, providing millions of creators with the tools and opportunities they need to succeed.
Creatd’s decision to auction a substantial stake in Vocal underscores its commitment to maximizing shareholder value and exploring new opportunities in the digital content creation and distribution sector. The auction will provide the necessary capital to invest in strategic acquisitions and partnerships that align with Creatd’s long-term vision, ultimately creating a win-win situation for both shareholders and the creators who power Vocal.
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