Creatd, Inc. (OTC: CRTD) Completes $50 Million Equity Facility, Acquiring 49% Interest in Murge E-commerce Inc.

• Creatd, Inc. secures a 49% equity stake in Murge E-commerce Inc. through a $50 million transaction, featuring anti-dilution protection to safeguard Creatd’s ownership during future acquisitions.

• The strategic partnership aims to drive growth and enhance shareholder value by leveraging a shared services model to acquire and scale high-potential e-commerce brands

• Creatd plans to implement its proprietary AI strategies, integrations, and workflows to optimize marketing, operations, and data analytics, enabling efficient scaling and enhanced brand performance for Murge’s e-commerce portfolio.

Creatd, Inc. (OTC: CRTD) is pleased to announce the successful closing of a $50 million transaction with Murge E-commerce Inc. Under the terms of the agreement, Creatd has secured a 49% equity stake in Murge, featuring anti-dilution protection that preserves Creatd’s ownership during future acquisition activities. Creatd has authorized and established contractually, 100 million shares of common stock to underlie preferred securities for Murge, facilitated by an equity reserve with the Pacific Stock Transfer Company. This strategic agreement aims to maximize the value of Creatd’s investments while aligning with its growth objectives.

This definitive agreement is designed to drive growth, leverage Creatd’s equity in a non-dilutive manner, and enhance shareholder value through the acquisition and scaling of high-potential e-commerce brands optimizing shared services model.

Murge E-commerce Inc. is set to execute its acquisition strategy through previously established letters of intent, targeting the development of definitive acquisition agreements with the following high-potential consumer product companies:

• An organic skincare brand with over $2.4 million in TTM revenue and over $1million TTM EBITDA.

• A major provider of home recreational equipment with over $24.2 million in TTM revenue and $5.5 million TTM EBITDA.

• A nutritional supplement brand with over $2 million in TTM revenue and over $1 million TTM EBITDA.

• A digital ad agency with nearly $2 million in TTM revenue and $1 million TTM EBITDA.

Collectively, these businesses are projected to generate over $30 million in revenue and $8 million in EBITDA in 2024, showcasing strong growth potential and profitability.

In alignment with its vision to drive exponential growth and create significant value, Creatd plans to leverage its proprietary AI strategies, integrations, and workflows across Murge’s e-commerce portfolio and subsequent brands. By embedding AI-driven solutions into marketing, operational processes, and data analytics, Creatd will efficiently scale these brands, streamline workflows, optimize advertising strategies, and enhance overall consumer engagement. This integration of AI is expected to elevate Murge’s ability to make data-driven decisions, personalize customer experiences, and achieve efficient scaling, ultimately enhancing brand performance and market competitiveness.

“This partnership represents a major step forward for Creatd, shareholders, and the common stock,” said Jeremy Frommer, CEO of Creatd. “Through this collaboration with Murge, we can strategically tap into high-growth markets while further leveraging our investments in Vocal Inc., OG Collection Inc., and Studio 96 Publishing, as well as our ownership of minority interests in several CPG brands. By utilizing Creatd’s advanced AI strategies, integrations, and workflows, we are positioned to drive substantial efficiencies and scale these brands with precision, delivering enhanced value to Creatd shareholders.”

Brad Gunn, CEO of Murge E-commerce Inc., commented, “Formalizing our partnership with Creatd allows us to accelerate our acquisition strategy and deliver substantial growth across our portfolio. With Creatd’s financial, operational, and technological expertise, we are well-positioned to rapidly scale our identified e-commerce brands, driving exceptional value for all stakeholders.”

As part of the agreement, both Creatd and Murge will have board representation to ensure ongoing strategic alignment and cooperation. Creatd will provide Murge with comprehensive financial, operational, and technological support, including advanced AI-driven strategies and solutions, to fuel growth.

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