Published on September 30, 2024
Creatd, Inc. (OTC: CRTD) is pleased to announce the successful closing of a $50 million transaction with Murge E-commerce Inc. Under the terms of the agreement, Creatd has secured a 49% equity stake in Murge, featuring anti-dilution protection that preserves Creatd’s ownership during future acquisition activities. Creatd has authorized and established contractually, 100 million shares of common stock to underlie preferred securities for Murge, facilitated by an equity reserve with the Pacific Stock Transfer Company. This strategic agreement aims to maximize the value of Creatd’s investments while aligning with its growth objectives.
This definitive agreement is designed to drive growth, leverage Creatd’s equity in a non-dilutive manner, and enhance shareholder value through the acquisition and scaling of high-potential e-commerce brands optimizing shared services model.
Murge E-commerce Inc. is set to execute its acquisition strategy through previously established letters of intent, targeting the development of definitive acquisition agreements with the following high-potential consumer product companies:
Collectively, these businesses are projected to generate over $30 million in revenue and $8 million in EBITDA in 2024, showcasing strong growth potential and profitability.
In alignment with its vision to drive exponential growth and create significant value, Creatd plans to leverage its proprietary AI strategies, integrations, and workflows across Murge’s e-commerce portfolio and subsequent brands. By embedding AI-driven solutions into marketing, operational processes, and data analytics, Creatd will efficiently scale these brands, streamline workflows, optimize advertising strategies, and enhance overall consumer engagement. This integration of AI is expected to elevate Murge’s ability to make data-driven decisions, personalize customer experiences, and achieve efficient scaling, ultimately enhancing brand performance and market competitiveness.
“This partnership represents a major step forward for Creatd, shareholders, and the common stock,” said Jeremy Frommer, CEO of Creatd. “Through this collaboration with Murge, we can strategically tap into high-growth markets while further leveraging our investments in Vocal Inc., OG Collection Inc., and Studio 96 Publishing, as well as our ownership of minority interests in several CPG brands. By utilizing Creatd’s advanced AI strategies, integrations, and workflows, we are positioned to drive substantial efficiencies and scale these brands with precision, delivering enhanced value to Creatd shareholders.”
Brad Gunn, CEO of Murge E-commerce Inc., commented, “Formalizing our partnership with Creatd allows us to accelerate our acquisition strategy and deliver substantial growth across our portfolio. With Creatd’s financial, operational, and technological expertise, we are well-positioned to rapidly scale our identified e-commerce brands, driving exceptional value for all stakeholders.”
As part of the agreement, both Creatd and Murge will have board representation to ensure ongoing strategic alignment and cooperation. Creatd will provide Murge with comprehensive financial, operational, and technological support, including advanced AI-driven strategies and solutions, to fuel growth.
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