Creatd, Inc. Benefits from Substantial Debt Conversion and Warrant Exercise Activity During July 2021
- During July 2021, approximately $3.5 million in debt converted into common stock at $5.00.
- In addition, during July 2021, the Company received approximately $4.2 million in cash from warrants exercised at $4.50.
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 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."
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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SOURCE Creatd, Inc.