Business
Creatd Announces $50M Stock Commitment to Murge E-commerce Inc. as it Acquires a Portfolio of Companies Generating $30-50M in Revenue and Over $8.5M in EBITDA
Creatd Announces $50M Stock Commitment to Murge E-commerce Inc. as it Acquires a Portfolio of Companies Generating $30-50M in Revenue and Over $8.5M in EBITDA.
About this update from Creatd Inc.
[{"type":"text","content":"Creatd backs a seasoned CEO leading the Murge effort, with over $1.6 billion raised and three successful IPOs from scratch.The deal is structured as a preferred equity transaction, ensuring a non-dilutive event for existing shareholders and no change in control.Voting rights for new shareholders capped at under 5%, with principals restricted from selling shares for multiple years.Creatd expects to close the Murge transaction within 45 days.Acquisition targets are expected to help Murge and Creatd reach $100 million in annual revenues within 18 months.Creatd, Inc. (OTC: CRTD) today announced a pivotal transaction, securing a $50 million stock commitment from Murge E-commerce Inc. This strategic investment supports Creatd’s accelerated plan to uplist to a national exchange by acquiring several fast-growing, EBITDA-positive private companies with a collective annual revenue exceeding $30 million. Murge E-commerce Inc. has successfully completed its due diligence and Letter of Intent (LOI) process with four separate companies. The transaction will be structured as a preferred equity deal with a commitment of $50M of value in Creatd shares. This will create a non-dilutive event for existing shareholders. The Company’s objective is to increase shareholder value through accretive transactions such as Murge, generating positive cash flow. Voting rights for new shareholders will be capped at less than 5%, with principals restricted from selling for multiple years. Murge will also be given a seat on Creatd’s Board of Directors and vice versa.Key Points:Murge will complete the acquisition of four profitable companies, which collectively generate $30 million in revenue and over $8.5 million in EBITDA. Creatd and Murge will secure and finance the acquisitions during this period utilizing up to $50 million of preferred stock.The companies will maintain their independent operations, while Creatd takes on financial management, back-office operations, technology and data support, and key M&A advisory services for both companies. This structure allows Murge to concentrate on identifying new growth opportunities, while positioning Creatd to strengthen its net equity by up t $50M, creating an opportunity to immediately apply for a listing on a national exchange as the company would meet the most critical criteria.Creatd and Murge recognize a st...