- Vocal, Inc., a subsidiary of Creatd, Inc., bolsters its tech platform's standing in the creator economy and plans to secure funding for expansion through direct investment.
- Creatd announces it will file Q2 2023 gross revenues of $800,000, coupled with notable decreases in operating costs.
- Since its listing on the OTCQB Venture Market in September 2022, Creatd's trailing 12-month revenues have remained consistent, nearing $3.5 million.
- CEO and Chairman Jeremy Frommer will be hosting an X (formerly Twitter) Space on 8/17/23 at 12PM EST to review its strategic plan in more detail: https://twitter.com/i/spaces/1BdGYyENkYyGX
NEW YORK, Aug. 14, 2023 /PRNewswire/ -- Creatd, Inc. $VOCL; ("Creatd" or the "Company"), the parent company of Vocal, today announced Q2 2023 financial results and a series of strategic developments within its subsidiaries and assets aimed at unlocking their true value. It's the Company's intention to create multiple standalone public entities from its portfolio of assets.
Creatd is proud to announce it has successfully structured Vocal, Inc., as a private subsidiary to independently house and raise capital for the Vocal technology platform. This decision stems from the management team's belief in Vocal's intrinsic value in the private market, estimated to be between $60 million and $100 million. Recent private valuations of the Company's competitors have been estimated at between $600 million and $1 billion. The Company intends to eventually create enough shareholder support to IPO Vocal, Inc. separate and apart from the holding company.
Vocal, Inc. is gearing up to launch a Regulation Crowdfunding ("Reg CF") raise, in which Creatd will maintain majority ownership of the subsidiary. The offering will be up to $5 million in a high-yielding participating preferred security specific to the private company Vocal, Inc. and not directly tied to Creatd's common stock.
Chairman and CEO Jeremy Frommer said, "In today's markets, individual pieces of a business are greater than the sum of the whole. It is quite obvious to me that the holding company, Creatd, trading on the OTCQB for the last 12 months and our primary form of financing for the better part of the last decade, cannot be relied on in the current market for financing without too much dilution. As of today, I am actively engaged in constructive discussions with current bond holders and creditors regarding our strategic plan, and updates will be shared with the investor community as they materialize."
Continued Frommer, "The common stock must be given a breather from the legacy financing vehicles we have previously employed. With the success of a Vocal, Inc. Reg CF, I believe we will see the common stock reflect the appropriate value as the majority investor in an independent technology company worth as much as $100 million on a comparable basis to its peers. In addition, as I have indicated before, we will be spinning out the OG Collection, Inc. as a special dividend directly to Creatd ($VOCL) shareholders. Following an announcement on the completion of its audit, we expect to soon announce a record date for Creatd shareholders to take advantage of the OG Collection Inc.'s special dividend. These actions are meant to increase shareholder value as well as combat the abusive short selling practices that have infected the small and micro cap stock markets."
Q2 2023 Financial Highlights
Vocal Revenue Growth: In the first half of 2023, Vocal displayed strong growth, solidifying its market standing. Quarterly revenues reached $800,000 with net revenues at $700,000. The Company's trailing 12-month revenues stand at $3.5 million, and it anticipates steady organic growth while keeping operational expenses in check.
Efficiency and Cost-Savings: Despite a slight drop in quarterly revenues, Creatd has strategically refocused on profitable core businesses, causing the revenue decline. This, coupled with staff reductions and austerity steps, has reduced payroll costs by almost 40%, from $1.2 million in 2022 to $721,000 in Q2 2023. This is projected to decrease further next quarter. Annual fees for legal, accounting, and consulting have also dropped by nearly 60%, from $850,000 to $300,000. Service expenses have been reduced company-wide, enhancing operational efficiency.
The Company invites shareholders and potential investors to join CEO and Chairman Jeremy Frommer hosted X (formerly Twitter) Space on 8/17/23 at 12PM EST to review its strategic plan in more detail: https://twitter.com/i/spaces/1BdGYyENkYyGX
About Creatd, Inc.
Creatd, Inc. ($VOCL) operates as a publicly traded holding company, strategically positioned in the digital landscape. Central to its portfolio is Vocal, our flagship social publishing platform designed to drive user engagement and monetization.
Vocal Platform: https://vocal.media;
Website: www.creatd.com
Creatd IR: https://investors.creatd.com;
Investor Relations: ir@creatd.com
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SOURCE Creatd, Inc.
