Creatd Announces Memorandum of Understanding to Purchase Majority Stake in Direct-to-Consumer Beverage Brand, Dune Glow Remedy
- The launch of Dune Glow Remedy exemplifies the Company's ability to leverage its internal resources, design capabilities, and the Vocal platform for the development and marketing of new products.
- Upon closing, Creatd will begin recognizing Dune's revenues in its consolidated financial statements; Dune is expected to generate between $500,000 to $1 million in net revenues over the next 12 months.
FORT LEE, N.J., Aug. 2, 2021
FORT LEE, N.J., Aug. 2, 2021 /PRNewswire/ -- Creatd, Inc. (Nasdaq CM: CRTD) ("Creatd" or the "Company"), the parent company of Vocal, today announced the launch of Dune Glow Remedy ("Dune"), a direct-to-consumer brand focused on promoting wellness through its range of health-oriented beverages. The Company has additionally announced that it has entered into a Memorandum of Understanding ("MOU") to acquire a majority equity stake in Dune.
Pursuant to the MOU, Creatd intends to acquire a 50.4% equity stake in Dune in exchange for a combination of cash and stock. The Company expects to execute definitive agreements early in the fourth quarter 2021 and to close shortly thereafter, subject to the completion of due diligence and other closing conditions. After closing, Creatd will begin recognizing Dune's revenues in its consolidated financial statements. Dune is expected to generate between $500,000 to $1 million in net revenues over the next 12 months.
Commented Creatd CEO Jeremy Frommer, "We are working to finalize our purchase of a majority stake of Dune, as well as that of Wobble Wedge, as announced last week. Together with Plant Camp, Creatd's first acquisition in the e-commerce category, these transactions represent a strong portfolio of majority-owned DTC brands, all of which can benefit from direct access to Creatd's resources, technology, and marketing expertise. We are confident that, with Creatd's support, these brands can materially grow revenues in a cost-efficient, timely, and scalable way, leveraging Vocal's powerful network and first-party data to identify and activate an enthusiastic and loyal consumer base."
The idea for Dune came after its founders, Tom Punch, Stephanie Roy Dufault, and Mark De Luca, identified an opportunity in an emerging area of the functional beverage space: beauty. As a whole, the functional beverage market has risen exponentially, having grown 360% since last year as compared to 9% for the rest of the beverage market, according to Bloomberg. However, the market has seen recent growth particularly in the 'beauty from within' segment, referring to food and drink products specifically designed for cosmetic purposes, suggesting increasing awareness among consumers of the impact of nutrition on one's physical appearance.
Dune's beverages are meticulously crafted with functional ingredients that nourish skin from the inside out and enhance one's natural glow. Explained Ms. Roy Dufault, "The link between inner health and outer beauty has never been so clear. Our unique beauty drink is designed not only to make your skin glow but to foster that magic self-care moment we all deserve."
Tom Punch brings more than a decade of experience of immersion in the creator landscape and unlocking value for high-growth consumer, internet, technology brands. Prior to co-founding Dune, Mr. Punch was a lead executive for YouTube giant WatchMojo, where he was actively involved in strategic partnerships and corporate development. In his time there, Mr. Punch helped turn WatchMojo into one of the leading youth-oriented media brands in North America. Stephanie Roy Dufault has over a decade of communication experience, specifically in the beauty and fashion market, where she developed a keen understanding of brand and influencer partnerships.
Commented Mr. Punch, "As someone who has developed and launched numerous internet consumer brands over the years, I have had unique visibility into the necessity of disruptive marketing. Having the support of Creatd, and access to their extensive resources and expertise, means that an entrepreneur like myself can significantly cut down on cost and time to market, and reach Dune's target consumers faster and with greater impact."
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.
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