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Creatd Announces Letter of Intent for 25% Sale of OG Collection, Inc. at $2.5 Million Purchase Price; Transaction Anticipated to Close Ahead of Planned OTC Spin-Off
Creatd Announces Letter of Intent for 25% Sale of OG Collection, Inc. at $2.5 Million Purchase Price; Transaction Anticipated to Close Ahead of Planned OTC Spin-Off.
About this update from Creatd Inc.
[{"type":"text","content":"\n\n\n\nCreatd Announces Letter of Intent for 25% Sale of OG Collection, Inc. at $2.5 Million Purchase Price; Transaction Anticipated to Close Ahead of Planned OTC Spin-Off\n\n/* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n\n\n\n\n\n\nCreatd Announces Letter of Intent for 25% Sale of OG Collection, Inc. at $2.5 Million Purchase Price; Transaction Anticipated to Close Ahead of Planned OTC Spin-Off\nPR Newswire\nNEW YORK, Dec. 6, 2022\n\n\n\nNEW YORK, Dec. 6, 2022 /PRNewswire/ -- Creatd, Inc. (OTCQB: CRTD) (\"Creatd\" or the \"Company\"), a creator-first technology company, today announced that it has entered into a Letter of Intent (\"LOI\") with an outside party for the sale of 25% of the equity interests of its subsidiary OG Collection, Inc. (the \"OG Collection\"), its acclaimed media archive capturing some of the most iconic publications and people of the 20th century.\n\n \n \n \n \n \n \n\n \nSummary of Proposed TransactionConsideration for Purchase of Shares: Under the terms of the LOI, Dorado Goose LLC shall acquire a total of 500,000 shares of OG Collection, Inc. for cash consideration of $2,500,000, implying a pre-money valuation of $7,500,000 and a post-money valuation of $10,000,000.Capitalization: As previously announced, Creatd is pursuing its plan to spin-off the OG Collection, Inc. As part of the transaction, and subject to board approval, the Company will be issuing 80% ownership interests of OG Collection, Inc. to shareholders of record, and 20% to the entity's management. Upon the closing of the proposed transaction outlined in the LOI, this initial capitalization would be adjusted to reflect the new investors' capital investment. With the purchase of the 25% ownership by Dorado Goose LLC, the original 80% ownership to Creatd shareholders would be reduced to 60% and management's original 20% would be reduced to 15% post-transaction.A record date will be set prior to the distribution of the spin out shares of OG Collection, Inc. Only those shareholders that can demonstrate physical ownership as of such record date will be entitled to the new security.Current Assets: O...