Creatd, Inc. (Nasdaq CM: CRTD) (“Creatd” or the “Company”), the parent company of Creatd Ventures announced that it has entered into a non-binding Memorandum of Understanding (“MOU”) to purchase a 100% ownership stake in Brave, a plant-based food company that provides convenient and healthy breakfast food products that don’t compromise on taste and quality. Following the close of the proposed transaction, which the Company expects to occur within the coming weeks, Creatd will begin recognizing Brave’s revenues in its consolidated financial statements, increasing the overall value of Creatd Ventures’ portfolio.
Like the other brands in Creatd Ventures’ portfolio–Camp, Dune, and Basis–Brave began with a creator and a problem to solve. The world was struggling with conventional breakfast options that pit nutrition against convenience. Brave was designed to break this mold, and emerged to offer consumers a better, healthier superfood breakfast.
Commented Thomas Punch, head of Creatd Ventures, “Brave has all the hallmarks of an ideal acquisition candidate for our portfolio of brands: a health and wellness consumer brand, with a subscription-oriented business model, that is meeting a growing demand among a loyal base of recurring consumers. Between our shared resource model and the audience insights leveraged from Vocal and from our brand collaborations, we believe that Creatd Ventures offers a significant value proposition for up-and-coming brands like Brave. Here, we help creators become entrepreneurs, and enable them to unlock scale while growing sustainably.”
Additionally, Creatd today announced that it has entered into definitive agreements for a private placement with an aggregate principal amount of $2.15 million (the “Private Placement”). Pursuant to the Private Placement, the Company agrees to sell and issue original issue discount convertible debentures and warrants to purchase shares of common stock. The debentures will be issued with a 10% original issue discount, resulting in gross proceeds of approximately $1.9 million, have a maturity date of November 30, 2022, subject to extension by six months at the Company’s option, and are convertible into shares of the Company’s common stock at a conversion price of $2.00 per share. Participating in the transaction were numerous longtime investors in the Company.
