Chairman Notes
Today marks our most important financial offering as a company since our uplisting in
September of 2020. With no debt on our balance sheet and a closing gap between
revenue and operational expenses, Creatd’s expansion has reached its moment of
initiation. The $40 Million Rights Offering we announced today, available to all Creatd
shareholders for participation, is–if fully subscribed–expected to yield between a 10x –
20x increase in revenues over the next 12 to 18 months. If all of the Warrants
underlying the Units were to be exercised in the future, the Company would receive an
additional $180MM.
Over the last few years, I have observed our stock oscillate from as low as $0.65 a
share to as high as $9.80, which effectively translates into a company valuation of
between $15MM – $100MM. Today we stand at 20.1MM shares outstanding, at $XX
price, for a market value of $XX MM as well as the ability to access authorized shares of
up to $100MM in the future. We have kept a tight float in comparison to microcap stocks
such as Remark Holdings (MARK) and Genius (GNUS), which trade at sub $1.00 with
over $100MM and $250MM in outstanding shares, respectively.
During this few year period, we grew revenues from nothing to $4.3MM for Fiscal Year
2021, and are on our way to reaching between $7MM – $10MM for Fiscal Year 2022,
pre-expansion plan initiation. All the while, we maintained flat operating expenses, with
the exception of one-time charges, as well as a decrease in our core platform, Vocal’s,
marketing spend over the past three quarters. Additionally, during this same period we
grew Vocal’s network to more than 1.4MM creators and an audience reach that exceeds
75MM. And finally, during this same period, we implemented continuous product
updates to Vocal–truly making it a best-in-class platform that today serves as a
homebase and safe environment for diverse creators of all shapes, sizes and mediums.
With private funding from friends and family as well as institutional shareholders, we
never tapped into the venture capital space. Instead, we embarked in 2016 on a years-
long journey to the Nasdaq–an audacious choice and a highly complex undertaking–
and ultimately achieved that in September, 2020. Most importantly, we have since
eliminated nearly all outstanding debt from our balance sheet, unlike small-cap
companies such as Buzzfeed (BZFD), E-Sports Entertainment (GMBL), and Ipsidy
(AUID), among the many other Nasdaq companies struggling with debt. As things stand
today, we believe we are finally in a position to compete head-to-head with the multi-
billion-dollar-valued platforms in our space, at a fraction of their internal headcount, and
with far lower development costs.
As we speak, we are witnessing the transfer of value away from legacy social media
companies, like Snap, Facebook and Twitter, toward subscription-based business
models. We have also designed Vocal to withstand the current perceptions of these
platforms, by employing an AI-assisted and human-led moderation system to cultivate a
safe and secure platform for our creators and brands. Creatd’s founders built the non-ad
dependent Vocal platform upon the general thesis that a closed and safe ecosystem
utilizing first-party data to increase efficiencies creates a sustainable and defensible
business model. With this, Vocal is now set to seize the mantle from these companies.
I encourage you all to read our Growth and Capital Expansion Plan and Rights Offering
deck and look forward to communicating further in the future as well as hosting an
investor day presentation in the middle of June.
The new Explansion Plan investor presentation is live on Creatd’s site: https://creatd.com/presentation
