FORT LEE, N.J., July 29, 2021 /PRNewswire/ -- Creatd, Inc.
(Nasdaq CM: CRTD) ("Creatd" or the "Company"), the parent company
of Vocal, today announced that it has entered into a non-binding
Memorandum of Understanding ("MOU") to purchase a majority stake in
direct-to-consumer company, Wobble Wedge®, which has disrupted the
home improvement category with its eponymous, multi-patented
product. Wobble Wedges®, sold through both direct-to-consumer (DTC)
and wholesale avenues, are an interlocking modular system of
tapered shims that are adaptable to hundreds of uses. The Wobble
Wedge has become a staple tool for a wide range of user types, from
homeowners to craftspeople, hobbyists, restaurant owners, plumbers,
and more.
Pursuant to the MOU, Creatd intends to acquire a 55% equity
stake in Wobble Wedge, in exchange for a combination of cash and
stock. The Company expects to execute definitive agreements in
early fourth quarter 2021 and to close shortly thereafter, subject
to the completion of due diligence and other closing conditions.
After closing, Creatd will begin to recognize Wobble Wedge's
revenues in its consolidated financial statements.
Commented Creatd CEO, Jeremy
Frommer, "I am thrilled about this opportunity to add Wobble
Wedge to Creatd's e-commerce portfolio and to integrate their
incredible management team. After closing, we expect the
transaction to be immediately accretive to EBITDA and generate
between $1.5 - $1.7 million in net revenues over the next 12
months."
Co-CEO Skip Wehner said, "Wobble
Wedge was founded with the express intention to be a large-scale
brand in the commercial and home improvement space. For years we
have been on the lookout for the ideal opportunity to accelerate
our mission. The Creatd team is exactly what we were looking for,
and we could not be more excited about the chance to grow with
them."
Wobble Wedge was first invented when creator Robert Bellows—the
uncle of Mr. Wehner and a metal sculpture artist by trade—set out
to design a household product that would be scalable, low cost, and
that solved a universal problem: wobbly tables. What resulted was
the prototype for the Wobble Wedge, which was subsequently refined
through trial and error into the patented design still in use
today. To this day, Wobble Wedges are made entirely in the United States, selling between 800,000 to
1,000,000 wedges per month.
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
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SOURCE Creatd, Inc.