NEW
YORK, Sept. 2, 2022 /PRNewswire/ -- Creatd, Inc.
(Nasdaq CM: CRTD) ("Creatd" or the "Company"), today announced that
it has received a letter from Nasdaq notifying the Company of the
Nasdaq Hearings Panel's decision to delist the Company's stock as
the Company did not meet the $2.5
million stockholders' equity requirement for continued
listing prescribed in Listing Rule 5550(b). As of the opening of
business September 7, 2022, the
Company's stock will no longer trade on Nasdaq. The Company is
applying to have its stock quoted on the OTCQB marketplace
effective on that same date. Management expects to file an appeal
with Nasdaq within the prescribed time period, complete its Rights
Offering, and apply for immediate reinstatement on Nasdaq.
Said Founder and Executive Chairman Jeremy Frommer, "While we are terribly
disappointed by the Nasdaq's decision, we expect to have our Rights
Offering repriced and effective next week and will rapidly appeal
this decision in good standing with the stockholders' equity
requirement. The Company has brought its operating expenses down
significantly over the last 60 days to under $3 million per quarter. While revenue
expectations of $1.25 to $1.5 million for third quarter show exponential
revenue growth year over year, the Company has brought its monthly
cash burn to approximately $600K per
month. I remain confident in our business model and our ability to
fill our financial obligations irrespective of this development. We
will either prevail and be reinstated to Nasdaq, or we will move to
the private sector. I have already begun productive discussions
regarding alternative financing from the private market. The
Company remains in discussions regarding asset sales as the data
continues to demonstrate that, at current valuations, the
individual components are worth more than the sum."
Continued Mr. Frommer, "The market conditions and the Nasdaq's
lack of flexibility over the past few years have not been conducive
to success and the spirit of entrepreneurialism that we had
initially sought on the exchange. My goal is to create long-term
value for our shareholders and if the Nasdaq is not the right
environment, then we will endeavor to find one that accomplishes
that goal. Creatd has matured into a technology company with a
scalable business model. Our return on marketing is multiples of
our spend. Our operational costs have never been leaner with a
staff of 30. With the success of our upcoming financings, we will
increase the marketing budget and attempt to achieve cash flow
breakeven by third quarter, 2023. We expect the monthly burn of
$600K to be reduced by nearly 50% by
the start of second quarter, 2023, and revenues to exceed
$2 million a quarter by that same
timeframe. We expect to double revenues again FY 2023 over FY 2022.
We will continue to do our best to update the market on a regular
basis on our financial and business progress."
About Creatd
Creatd, Inc. (Nasdaq CM: CRTD) is a company dedicated to
unlocking creativity for creators, brands, and consumers. We
accomplish this through Creatd's four business pillars: Creatd
Labs, Creatd Partners, Creatd Ventures, and Creatd Studios.
Creatd: https://creatd.com;
Creatd IR: https://investors.creatd.com;
Vocal Platform: https://vocal.media;
Investor Relations Contact: ir@creatd.com
Forward-Looking Statements
Any statements that are not historical facts and that express,
or involve discussions as to, expectations, beliefs, plans,
objectives, assumptions or future events or performance (often, but
not always, indicated through the use of words or phrases such as
"will likely result," "are expected to," "will continue," "is
anticipated," "estimated," "intends," "plans," "believes" and
"projects") may be forward-looking and may involve estimates and
uncertainties which could cause actual results to differ materially
from those expressed in the forward-looking statements. We caution
that the factors described herein could cause actual results to
differ materially from those expressed in any forward-looking
statements we make and that investors should not place undue
reliance on any such forward-looking statements. Further, any
forward-looking statement speaks only as of the date on which such
statement is made, and we undertake no obligation to update any
forward-looking statement to reflect events or circumstances after
the date on which such statement is made or to reflect the
occurrence of anticipated or unanticipated events or circumstances.
New factors emerge from time to time, and it is not possible for us
to predict all of such factors. Further, we cannot assess the
impact of each such factor on our results of operations or the
extent to which any factor, or combination of factors, may cause
actual results to differ materially from those contained in any
forward-looking statements. This press release is qualified in its
entirety by the cautionary statements and risk factor disclosure
contained in our Securities and Exchange Commission filings.
View original content to download
multimedia:https://www.prnewswire.com/news-releases/creatd-receives-delist-decision-and-receives-15-days-to-file-appeal-301617220.html
SOURCE Creatd, Inc.