Published on October 03, 2024
Creatd, Inc. (OTC: CRTD) today announced a significant reduction in its issued and authorized shares by 1.2 million. This initiative demonstrates the Company’s ongoing commitment to optimizing its capital structure, enhancing shareholder value, and reinforcing confidence in the Company’s future growth prospects.
As part of this strategic initiative, the entire Creatd management team has voluntarily exchanged a substantial portion of their common shares into a more restrictive, non-dilutive class of preferred shares. This action, undertaken collectively by the management team, effectively reduces the overall share float, reinforcing their confidence in Creatd’s long-term vision and commitment to shareholder alignment.
CEO Jeremy Frommer stated, “Our decision to convert our holdings into more restrictive preferred shares underscores our commitment to the Company’s long-term success and our dedication to minimizing dilution for our shareholders. We believe that this move will not only strengthen our capital structure but also signal to the market our confidence in the growth strategy we are executing.”
The reduction in the share float, combined with management’s transition to a non-dilutive preferred share structure, is designed to protect and enhance the interests of both current and future shareholders. This strategy is expected to improve the Company’s financial flexibility, making it more attractive to investors, and positions Creatd to pursue acquisitions of EBITDA-positive companies that will drive sustainable profitability.
Creatd’s management team views this share reduction as an integral part of its broader mergers and acquisitions strategy to leverage non-dilutive capital structures for future growth. By maintaining a disciplined approach to managing the share float, the Company is better positioned to pursue growth opportunities that align with its mission of enhancing profitability and expanding its portfolio.
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