- Creatd, Inc. has released an update on its ongoing legal dispute with The Lind Partners, LLC and its affiliates, concerning a convertible promissory note in the amount of $900,000.
- The Lind Partners, LLC refused to negotiate along with other note holders, who all restructured their notes in 2022.
- Creatd, Inc. filed a motion to dismiss and in the event of discovery will seek trading records.
NEW YORK, March 8, 2023 /PRNewswire/ -- Creatd, Inc. (OTCQB: CRTD) ("Creatd" or the "Company"), the parent company of Vocal, today released an update regarding its ongoing legal dispute with The Lind Partners, LLC and its affiliates. The dispute concerns a convertible promissory note in the amount of $900,000, with Lind alleging that Creatd, Inc. breached certain representations and warranties related to the note and demanding immediate repayment of the full amount.
The Company responded to Lind's demands by offering numerous alternatives, while its underlying stock value continued to deteriorate rapidly. The Lind Partners, LLC refused to negotiate, unlike all other note holders who agreed to a restructuring last year. Continued pressure on the stock hindered financing and eventually led to Creatd's delisting from the Nasdaq to the OTC Markets.
In response, Creatd, Inc. has filed a motion to dismiss and has complied in a consistent legal fashion. In the event that the issue is joined, the Company will request in discovery all trading records related to its underlying company's stock by The Lind Partners, LLC.
CEO and Chairman of Creatd, Jeremy Frommer, stated, "At this early stage, we are strictly trying to analyze data. There is more than enough evidence that there has been unusual trading in CRTD and it demands further investigation."
He added, "To that end, we have asked legal counsel to look into filing multiple requests of trading records from market makers in CRTD stock. When and if the Company enters the discovery period in The Lind Partners, LLC case, any trading records related to The Lind Partners, LLC that were done with external broker dealers will also be analyzed."
The Company remains committed to resolving this dispute in a legal and fair manner and will continue to provide updates as the situation develops.
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.