- Company engages firm to complete audit of OG Collection, Inc., preceding its expected Upstream listing and special dividend distribution
- Company expects this dividend to provide material value to shareholders
- Registered spin-off expected to aid Company's effort of combating naked short selling and other abusive trading practices
NEW YORK, Feb. 27, 2023 /PRNewswire/ -- Creatd, Inc. (OTCQB: CRTD; Upstream: CRTD) ("Creatd" or the "Company"), the parent company of OG Collection, Inc. (the "OG Collection") is engaging an accounting firm to complete an audit of the OG Collection. This will enable the Company to then immediately file its initial listing S-1 required to begin trading on Upstream. The trading platform is a revolutionary app for digital securities powered by Horizon Fintex ("Horizon") and MERJ Exchange Limited ("MERJ").
The Company expects the OG Collection audit to be completed before the end of March and anticipates the subsidiary spinoff to occur before the end of second quarter. The spin-off of a listed public company is a corporate action which will create a unique CUSIP for OG Collection, Inc. As part of the registered spin-off, a special dividend consisting of tradeable OG Collection shares will be issued to all Creatd shareholders of record, with the record date expected to be in the second week of April.
Estimates of the physical collection as well as its associated IP have ranged from a pre-money valuation of nearly $10 million, per a recently completed financing, to a post-money potential of 7-10x that estimate. A further valuation of OG Collection's Web 3.0 business is currently underway and is not included in previous appraisals conducted by industry experts and should therefore be accretive to value.
Commented Jeremy Frommer, Creatd CEO and Chairman, "Based on the analysis we have received from external data science companies we have engaged, we can now distinctly identify the indicators and markers of potential illegal naked short selling. After speaking with counsel, it has become apparent that we should move forward with the process of prosecuting those who are found to be profiting from abusive trading tactics in Creatd's stock."
Continued Frommer, "In a financial system corrupted by loopholes and technology failings, I do believe that a barrage of special dividends on blockchain exchanges—small, medium or large—offered directly to physical shareholders of record is a necessary part of a CEO's strategy. In our case, in addition to the strategy of brute force in creating a new CUSIP and spinning out an operational company to its shareholders, Creatd intends on issuing numerous coupon-oriented dividends to our shareholders by extracting value across multiple business divisions; these may include coupons to lifetime Vocal+ subscription memberships, digital token opportunities related to recurring subscriptions for Creatd Ventures products like Dune, Camp, and Basis.
"The success of any strategy to combat Fail to Delivers (FTDs) and other backoffice public market loopholes will require shareholders to unite in order to help force a shareholder count. This is, in fact, the goal of CEOBLOC; namely, to unite retail investors and well-motivated CEOs to combat illegal market manipulation. In order for special dividend tactics to be successful, shareholders must create an account on a blockchain exchange so they can demand delivery of the dividend. It is this united demand and the power of the blockchain exchange that ultimately will bring an end to this decades-long battle."
Frommer continued, "I have studied the OG Collection spin-off and the implications of this corporate action, and believe in its potential to change the momentum, and how future CEOs combat the abusive trading tactics we are all fighting."
Forward Looking Statements
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