FORT LEE, N.J., Aug. 2, 2021 /PRNewswire/ -- Creatd, Inc.
(Nasdaq CM: CRTD) ("Creatd" or the "Company"), the parent company
of Vocal, today announced that it has repaid a significant majority
of its outstanding short-term debt and all aged payables, totaling
approximately $1.45 million, from the
proceeds of the Company's capital raise completed in June 2021. In addition, $3.5 million of the Company's outstanding notes,
comprising approximately 75% of long-term convertible notes, were
recently converted into shares of the Company's common stock at
$5.00 per share, above market price.
Moreover, during July 2021, the
Company received cash proceeds of approximately $4.2 million from the exercise of warrants at a
price of $4.50, also above
market.
The Company is approaching debt-free status as its remaining
debt totals approximately $1.68
million, which consists of a Government Payroll Protection
Program ("PPP") loan totaling $262,000, due May
2022, that carries interest of 1%; a $660,000 note related to the acquisition of
Seller's Choice; and the majority of the remaining balance in a
long-term convertible note.
Commented Creatd CEO Jeremy
Frommer, "During July, we made great progress towards our
objective of strengthening our balance sheet. With top line growth,
manageable debt, and a healthy cash level, we have no immediate
need to raise additional funds. We currently have over $5 million in available working capital,
consisting of cash and prepayment of third quarter product
development costs, as well as over 6.5 million warrants
outstanding, the majority of which are exercisable at $4.50. If all outstanding warrants were exercised
it would generate approximately $32
million of capital for the Company."
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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contained in our Securities and Exchange Commission filings.
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SOURCE Creatd, Inc.