In the after-hours session on Thursday, Creatd Inc. (CRTD) shares fell -3.56% to $3.25. Creatd stock finished last trading session at $3.37, up 5.31%. The daily trading volume for Creatd stock was 2.1 million shares, lower than the 3.68 million share average for the last 50 days. In the last three months, price of Creatd stock has fallen -5.07%, and so far this year it has fallen -67.90 percent.
Since the beginning of the month, Creatd stock has retreated 0.90%; however, over the last two weeks they fell -3.16%. CRTD stock plummeted in spite of the company’s bid to purchase a majority stake in a home improvement firm.
What company is CRTD acquiring stakes in?
The Vocal platform is owned and controlled by Creatd Inc. (CRTD), a company that is focused on creator-first technology and creator-first platforms. Through technology and partnerships, Creatd empowers creators, businesses, and brands.
Creatd Inc. (CRTD) announced today that it had entered into a non-binding Memorandum of Understanding (“MOU”) in order to acquire a majority stake in direct-to-consumer company Wobble Wedge. With its eponymous, multi-patented product, this Creatd -target firm has disrupted the home improvement category.
Wobble Wedges are interlocking modular systems of tapered shims that can be used for hundreds of purposes and are readily available direct to consumer (DTC) and wholesale. Many different user types use the Wobble Wedge, such as homeowners, craftsmen, hobbyists, restaurant owners, and plumbers.
CRTD intends to acquire a 55% stake in Wobble Wedge for cash and stock, under the terms of the MOU. CRTD expects to conclude definitive agreements in the early fourth quarter of 2021, followed by a timely closing, provided due diligence is completed and other conditions are met.
Wobble Wedge’s revenues will be recognized in CRTD’s consolidated financial statements following the closing. Robert Bellows invented Wobble Wedge to solve the universal problem of wobbly tables that he had set out to create.
Through trial and error, the prototype of the Wobble Wedge was eventually refined into the patented design used today. Wobble Wedges are still produced entirely in the United States, selling between 800,000 and 1,000,000 every month.
Why is this good deal for CRTD?
Adding Wobble Wedge to CRTD’s e-commerce portfolio and integrating their impressive management team is a significant opportunity. It is expected that Creatd Inc (CRTD) will generate net revenues of $1.5 to $1.7 million within 12 months of the closing of this transaction.
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