SPECIAL
NOTICE REGARDING FORWARD-LOOKING STATEMENTS
This
prospectus contains forward-looking statements. These forward-looking statements contain information about our expectations, beliefs
or intentions regarding our product development and commercialization efforts, business, financial condition, results of operations,
strategies or prospects, and other similar matters. These forward-looking statements are based on management’s current expectations
and assumptions about future events, which are inherently subject to uncertainties, risks and changes in circumstances that are difficult
to predict. These statements may be identified by words such as “expects,” “plans,” “projects,” “will,”
“may,” “anticipates,” “believes,” “should,” “intends,” “estimates,”
and other words of similar meaning.
These
statements relate to future events or our future operational or financial performance, and involve known and unknown risks, uncertainties
and other factors that may cause our actual results, performance or achievements to be materially different from any future results,
performance or achievements expressed or implied by these forward-looking statements. Factors that may cause actual results to differ
materially from current expectations include, among other things, those listed under the section titled “Risk Factors” and
elsewhere in this prospectus, in any related prospectus supplement and in any related free writing prospectus.
Any
forward-looking statement in this prospectus, in any related prospectus supplement and in any related free writing prospectus reflects
our current view with respect to future events and is subject to these and other risks, uncertainties and assumptions relating to our
business, results of operations, industry and future growth. Given these uncertainties, you should not place undue reliance on these
forward-looking statements. No forward-looking statement is a guarantee of future performance. You should read this prospectus, any related
prospectus supplement and any related free writing prospectus and the documents that we reference herein and therein and have filed as
exhibits hereto and thereto completely and with the understanding that our actual future results may be materially different from any
future results expressed or implied by these forward-looking statements. Except as required by law, we assume no obligation to update
or revise these forward-looking statements for any reason, even if new information becomes available in the future.
This
prospectus, any related prospectus supplement and any related free writing prospectus also contain or may contain estimates, projections
and other information concerning our industry, our business and the markets for our products, including data regarding the estimated
size of those markets and their projected growth rates. Information that is based on estimates, forecasts, projections or similar methodologies
is inherently subject to uncertainties and actual events or circumstances may differ materially from events and circumstances reflected
in this information. Unless otherwise expressly stated, we obtained these industry, business, market and other data from reports, research
surveys, studies and similar data prepared by third parties, industry and general publications, government data and similar sources.
In some cases, we do not expressly refer to the sources from which these data are derived.
PROSPECTUS
SUMMARY
This
summary highlights certain information about us, this offering and information appearing elsewhere in this prospectus and in the documents
we incorporate by reference. This summary is not complete and does not contain all of the information that you should consider before
investing in our securities. To fully understand this offering and its consequences to you, you should read this entire prospectus carefully,
including the information referred to under the heading “Risk Factors” in this prospectus beginning on page 12, the financial
statements and other information incorporated by reference in this prospectus when making an investment decision. This is only a summary
and may not contain all the information that is important to you. You should carefully read this prospectus, including the information
incorporated by reference therein, and any other offering materials, together with the additional information described under the heading
“Where You Can Find More Information.”
THE
COMPANY
Overview
Our
mission is to empower creators, entrepreneurs, and brands through technology and partnership. We accomplish this through Creatd’s
three main business pillars: Vocal Ventures, Creatd Partners, and Recreatd. At its core, Creatd centers around the philosophy that creators
are the driving force that propels success in the digital realm. This philosophy is represented by a framework we call the Creatd Cycle,
which operates on the premise that creators produce content that attracts audiences, who in turn attract brands who are interested in
reaching those audiences.
Creatd’s
first pillar, Vocal Ventures, houses our proprietary technology platforms, including Creatd’s flagship product, the Vocal platform,
and its network of 37 wholly owned-and-operated creator communities. Through Vocal, creators can create and share their stories in a
way that helps them get discovered by their ideal audiences and be rewarded for their creativity. Similarly, brands can access their
ideal consumers and drive conversions for their products and services. The Vocal platform’s scalable and unique underlying agile
framework lends itself well to future acquisitions and white-label opportunities for Creatd’s technology because of the ease with
which other platforms can be integrated into our ecosystem.
Creatd
Partners, Creatd’s second pillar, houses our brand-oriented initiatives, including our agency businesses, Vocal for Brands and
Seller’s Choice, as well as its corporate ventures and investments. Both of these agencies serve a multitude of clients, while
the venture arm looks to make direct investments in the ones that have significant upside opportunity. Creatd Partners pairs Creatd’s
resources and Vocal’s proprietary technology, which were built to simultaneously amplify creators’ discoverability and potential
reward and help direct-to-consumer brands achieve conversions and reach their target audiences, while generating value for all of Creatd’s
stakeholders.
Recreatd
is the pillar which houses Creatd’s intellectual property and legacy media assets, including acquired artwork, photographs and
media memorabilia. Recreatd represents an initiative by Creatd to revitalize transmedia content, utilizing Vocal Ventures’ technology,
data, and marketing capabilities to reboot archival media assets and e-commerce properties. The Company’s ability to leverage its
technology to revitalize this content represents a significant value proposition for media companies and publishers that are sitting
on vast collections of content that are of supreme quality but are not in a suitable format for today’s consumer.
Vocal
Vocal,
Creatd’s flagship product, is a robust, proprietary technology platform that provides best-in-class tools, safe and curated communities,
and monetization opportunities that enable creators to find a receptive audience and get rewarded. Through Vocal, content creators can
get discovered and monetize their content by connecting to their ideal audiences and partnering with the brands that want to reach those
audiences.
Vocal+
is Creatd’s premium subscription membership program. Vocal+ members pay a membership fee for premium features, including receiving
increased earnings for their content, reduced platform processing fees for Tips received, a Vocal+ badge on their creator page, eligibility
to participate in exclusive Vocal+ Challenges, and more. Creators may sign up for a Vocal+ membership when they create an account, or
they can upgrade an existing Vocal Free account to a Vocal+ account at any time.
Since
its initial launch in 2016, Vocal has grown to be one of the fastest growing communities for content creators of all kinds, including
writers, musicians, podcasters, photographers, and more; as of March 2021, Vocal has reached over 900,000 freemium creators and over
20,000 Vocal+ paid subscribers across its 38 owned and operated niche communities. Subsequent to the first quarter 2021, the Company
announced that Vocal+ reached a new record high, surpassing 25,000 subscribers.
Vocal
provides a broad stage for creators to connect with fans and find new audiences. In addition to enabling access to millions of unique
monthly visitors, the platform provides creators with a full suite of tools and services for content creation, discovery, distribution,
and monetization, including:
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Easy-to
use, rich media content editor: Vocal’s storytelling tools enable creators to produce beautiful and engaging stories in
a simple, user-friendly interface, and incorporate rich-media content of all kinds, including streaming content, photos, videos,
podcasts, product links, written text, and more. Vocal’s open canvas content creation editor makes it easy to create high-quality
and engaging stories, and is a cost effective alternative to managing a blog content management system (CMS).
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Numerous
Monetization Features: Both of Vocal’s membership tiers–Vocal freemium and the Vocal+ premium tier – provide
multiple monetization opportunities for creators. Creators can earn money i) every time their story is read, ii) by competing in
Challenges, iii) by receiving ‘tips’ and ‘bonuses’ iv) by collaborating on branded content campaigns through
the company’s in-house agency, Vocal for Brands. For freemium members, content ‘reads’ are monetized at a rate
of $3.80 per 1,000 reads (calculated based on time on page, scrolling behavior, and other internal metrics), whereas Vocal+ members
monetize at $6.00 per 1,000 reads. These rates are subject to change based on market trends or the introduction of additional features
and plan tiers.
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Brand-safe
advertising platform: Vocal was designed to target consumers in an authentic, non-interruptive way. Brand partnerships and collaborations
allow companies tap into the power of Vocal through campaign-optimized stories, authored by real Vocal creators, that build brand
affinity, trust, and drive sales.
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Transparent
Performance Data: Creators can view their “Stats” at any time to view their individual performance data, such as
how many Reads a given story received, how much money they have earned, and how many Tips, Bonuses, or ‘Likes,’ they
received. Additionally, Vocal users have the ability to view key metrics such as community-specific data and Vocal+ membership data.
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Valuable
Audience: The nature of Vocal’s genre-specific (niche) community structure is such that it generates a positively selected
audience, a quality which makes Vocal an attractive prospect for creators and brands alike. In a niche community, audiences are inherently
more likely to be interested in the particular content housed in that community.
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Vocal
for Brands
Creatd’s
internal content studio, Vocal for Brands, pairs leading brands with authentic creators to produce marketing campaigns that are non-interruptive,
engaging, and direct-response driven. The key value propositions for brands include:
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Authentic
Storytelling: Our internal data group partners brands with real Vocal creators to tell their brand’s story in a way that
is both engaging and trustworthy. In addition, brands can opt to sponsor a Challenge, which effectively yield a collection of crowdsourced
branded content for brands and help them reach a wider audience.
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Valuable
Audience: Vocal’s first-party data provides an opportunity to create highly targeted and segmented audiences to promote
branded content. Most importantly, Vocal’s technology helps brands target the right audience by utilizing and applying that
first-party data.
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Transparent
Analytics: For every campaign we produce, our brand clients have access to story performance data, engagement data, behavioral
data, and interest data. Brands can apply this data to further increase awareness and optimize audience targeting.
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Vocal’s
first-party data enables our team to create highly targeted and segmented audiences for Vocal for Brands campaigns, and help the brand
reach their ideal audience. Brands can access story performance data, engagement data, behavioral data, and sentiment data, all of which
is used to further optimize the campaign’s success. The combination of Vocal’s hyper-engaged audiences, user-generated communities,
and brand-safe environment help brands achieve maximum ROAS (return on ad spend).
Vocal
for Brands typically collects fixed fees ranging from $10,000 to $110,000, depending on campaign duration and specific client objectives.
Additionally,
with the introduction of Challenges in early first quarter 2020, brands can now collaborate with Vocal on a sponsored Challenge, prompting
the creation of high-quality stories that are centered around the brand’s mission and further disseminated through creators’
respective social channels and promotional outlets.
Seller’s
Choice
In
addition to Vocal for Brands, Creatd supports brands by providing managed and performance marketing services through Seller’s Choice.
an in-house marketing agency for DTC (direct-to-consumer) and e-commerce clients. Acquired by Creatd in September 2019, Seller’s
Choice provides direct-to-consumer brands with design, development, strategy, and sales optimization services. Its status as an Amazon
Solution Provider and its weighty operational structure made it an ideal candidate for acquisition in late 2019. Creatd’s business
model is built to absorb distressed operational infrastructures, integrate the few best components, and shed the non-essential costs.
Creatd
Partners
Creatd
Partners is the Company’s corporate venture arm, as well as the business division that encompasses management of Seller’s
Choice and Vocal for Brands. Creatd Partners invests in qualified brands who are aligned with our corporate mission, such as direct-to-consumer
brands, digital platforms, and technologies that support entrepreneurs and the creator economy. Creatd Partners was established with
the aim of nurturing high-potential, early-stage companies that can meaningfully benefit by leveraging Creatd’s technology, resources
and proven capacity to optimize visibility, reach, and conversions for direct-to-consumer products and services. Creatd Partners investments
are subject to the completion of rigorous due diligence and independent valuation assessment and may encompass a combination of financial
and operational support in exchange for an equity stake in the business.
Creatd
Partners’ first investment is Plant Camp, a direct-to-consumer food company that creates healthy and nutritional upgrades to classic
foods and was launched in December 2020. In first quarter 2021, the Company announced its second Creatd Partner investment, Untamed Photographer,
an environmental art platform for wildlife photographers.
Creatd
Partners is currently exploring future opportunities that fit its criteria and risk profile, seeking partner companies that combine a
quality product, seasoned founders, and the ability to leverage Creatd’s platform technology.
Moderation
and Compliance
One
of the key differentiating factors between Vocal and most other user-generated content platforms is the fact that each story submitted
to Vocal is run through the Company’s proprietary moderation process before it goes live on the platform. The decision to implement
moderation into the submission process was in direct response to the rise of misinformation and bad actors on many social platforms.
In response to these inherent pitfalls within the content landscape, Vocal’s proprietary moderation system combines the algorithmic
detection of copyrighted material, hate speech, graphic violence, and nudity, and human-led curation to ensure the quality and safety
of each story published on Vocal, thus fostering a safe and trustworthy environment for creators, audiences, and brands. Moderation and
compliance are more important than ever in a world where ambiguity can systematically damage value. Vocal’s enforcement of community
guidelines and emphasis on content moderation protects the platform, its creators, and Creatd shareholders.
Trust
and safety are paramount to the Vocal ecosystem. We follow best practices when handling personally identifiable information, with guidance
from the European Union’s General Data Protection Regulation (GDPR), the California Consumer Privacy Act (CCPA), and the Digital
Millennium Copyright Act (DMCA).
Platform
Compliance Policies include:
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Human-led,
technology assisted moderation of every story submitted;
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Algorithmic
detection of hate speech, nudity, and copyright infringement;
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Brand,
creator, and audience safety enforced through community watch; and
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The
rejection of what we consider toxic content, with the understanding that diverse opinions are encouraged.
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Technology
Development
Vocal’s
proprietary technology is built on Keystone, the same underlying open-source framework used by industry-leaders such as Atlassian, a
$43-billion Australian technology company. Some of the key differentiating elements of Vocal’s technology are speed, sustainability,
and scalability. The Company continues to invest heavily in research and development to continuously improve and innovate its platform,
with the goal of optimizing the user experience for creators. Vocal’s architecture allows it to do more with less cost and provides
a model capable of turning a profit.
Additionally,
the Vocal platform and its underlying technology allows us to maintain an advantageous capital-light infrastructure. By using cloud service
providers, we are able to focus on platform and revenue growth rather than building and maintaining the costly internal infrastructures
that have materially affected so many legacy media platforms. Vocal’s technology has been specifically designed and built to scale
without a material corresponding increase in operational costs. While our users can embed rich media, such as video, audio, and product
links, into their Vocal stories, the rich media content is hosted elsewhere (such as YouTube, Instagram, Vimeo, Shopify, Spotify, etc.).
Thus, our platform can accommodate rich media content of all kinds without bearing the financial or operational costs associated with
hosting the rich media itself. In addition to the benefits this framework affords to the Company, it is the additional benefit to our
content creators, in that a creator can increase their monetization; for example, a creator can embed their YouTube video into a Vocal
story and thus derive earnings from both platforms when their video is viewed.
Application
of First-Party Data
Creatd’s
business intelligence and marketing teams identify and target individual creators, communities, and brands, utilizing empirical data
harnessed from the Vocal platform. The team’s ability to apply its proprietary first-party data works to reduce acquisition costs
for new creators and to help provide brands with conversions and an ideal targeted audience. In this way, our ability to apply first-party
data is one of the value-drivers for the Company and the key advantages of its closed ecosystem strategy, which we refer to as the Creatd
Cycle.
In
its simplest definition, first-party data is data that you collect directly from your customers. Even the most simplistic blog website
is collecting some degree of first-party data; Creatd’s edge is in its application of that data. Our organization is constantly
collecting a tremendous amount of first-party behavioral data extracted from the Vocal platform. To date, we have collected hundreds
of millions of data points around our customers and our audiences.
Importantly,
we do not sell that data, that being a common monetization opportunity for many other businesses. Instead, we use our collected first-party
data for the purposes of bettering the platform. Specifically, our data helps us understand the behaviors and attributes that are common
among the creators, brands, and audiences within our ecosystem. We then pair our first-party Vocal data with third-party data from distribution
platforms such as Facebook and Snapchat to provide a more granular profile of our creators, brands, and audiences.
It
is through generating this valuable first-party data that we can continually enrich and refine our targeting capabilities for branded
content promotion and creator acquisition, and specifically, to reduce our creator acquisition costs (CAC) and subscriber acquisition
costs (SAC). Lower acquisition costs combined with increasing lifetime value (LTV) per subscriber, means that our enterprise value is
accelerating each time we acquire a new user. We anticipate the lifetime value of our subscribers to increase as we introduce more features
that cater to the needs of our creators. It is Vocal’s unique capability to collect and apply first-party behavioral data that
allows us to simultaneously increase the LTV of our subscribers over time, while lowering the cost to acquire them. In fact, the link
between incentivizing creators and lowering creator acquisition costs is a primary focus of the data science team, and an important consideration
for every feature we develop for the Vocal platform.
Competition
The
idea for Vocal came as a response to what Creatd’s founders recognized as systemic flaws inherent to the digital media industry
and its operational infrastructures. Depreciating value of digital media business models built on legacy technology platforms created
a unique opportunity for development of a creator-centric platform that could appeal to a global community and, at the same time, be
capable of acquiring undervalued complimentary technology assets.
Creatd’s
founders built the Vocal platform upon the general thesis that a closed and safe ecosystem utilizing first-party data to increase efficiencies
could create a sustainable and defensible business model. Vocal was strategically developed to provide value for content creators, readers,
and brands, and to serve as a home for the ever-increasing amount of digital content being produced and the libraries of digital assets
lying dormant.
Vocal
is most commonly discussed as a combination of:
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Medium,
a platform for writers built by former Twitter founder Ev Williams;
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Reddit,
a social news aggregation, web content rating, and discussion website; and
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Patreon,
a membership platform that provides business tools for content creators to run a subscription service.
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Importantly,
Creatd does not see Vocal as a substitute or competitor to segment-specific content platforms, such as Vimeo, YouTube, Instagram, or
SoundCloud. We do not want to replace anyone; we built Vocal to be accretive to the entire digital ecosystem. In fact, one of the most
powerful components of our technology is the fact that Vocal makes it easy for creators to embed their existing published content, including
videos, songs, podcasts, photographs, and more, directly into Vocal. We see this as a growth opportunity by building partnerships with
the world’s greatest technology companies and to further spread our roots deeper into the digital landscape.
Revenue
Model
Creatd’s
revenues are primarily generated through:
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Creator
Subscriptions: Vocal+ subscription offering provides creators with increased monetization and access to premium tools and features.
At approximately $10 per month, Vocal+ offers creators a strong value proposition for freemium users to upgrade, while providing
a scalable source of monthly recurring gross revenue for Creatd. Management projects 100,000 paid subscribers in 2021.
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Marketing
Partnerships: Vocal partners with leading brands and creators through its internal content studio, Vocal for Brands, to produce
influencer and content marketing campaigns, including sponsored Challenges, that leverage the power of Vocal. Branded stories and
Challenges are optimized for conversions, distributed to a targeted audience based on Vocal’s first-party data, and are optimized
for conversions to maximize revenue growth.
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Managed
Services: Creatd’s in-house marketing agency for e-commerce, Seller’s Choice, provides direct-to-consumer brands
with design, development, strategy, and sales optimization services.
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Platform
Processing Fees and Microtransactions: With Tipping and other types of microtransactions, audiences can engage and support their
favorite Vocal creators by actively investing in their creativity. Vocal takes a platform processing fee on all transactions. Each
Tip sent on Vocal generates revenue for the Company in the form of platform processing fees. For Vocal Free creators, we retain a
7% platform processing fee for every Tip exchanged. For Vocal+ creators, we retain a 2.9% platform processing fee.
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Affiliate
sales: Vocal generates revenue through affiliate marketing relationships, which pays the Company a percentage of purchases made
on our platform. Affiliate relationships include Amazon, Skimlinks, Tune, and more. This represents a unique opportunity in the post-pandemic
environment where brands need expansive distribution pipelines such as Vocal to reach broader audiences.
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E-commerce:
Our e-commerce strategy involves revitalizing archival imagery and media content in dormant legacy portfolios. Our curation and
data capabilities have helped us create scalable and definable value for our internal collection of media assets through financing,
trademarking, licensing, and production opportunities. Creatd has an exclusive license to leverage the stories housed on Vocal, reimagining
them for films, episodic shows, games, graphic novels, collectibles, books, and more.
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Growth
Strategy:
Continued
growth is likely to be achieved by focusing on the following key areas:
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Creator
Growth: Vocal brings new creators, their audience, and brands to its platform through organic growth, performance marketing,
and brand-building campaigns that drive awareness. As the Vocal team continues to collect first-party behavioral data, we are able
to further refine an ideal user profile and hone a specific targeting strategy to effectively scale the platform’s creator
base. Our product roadmap includes new features that will work to incentivize creators to help us expand the Vocal network organically;
upcoming features include creator referrals and gated content, which will enable creators to utilize Vocal’s microtransaction
capabilities to charge recurring fees for exclusive content. With these new features, creators will have further opportunities to
get discovered and earn on Vocal, which works to the benefit of the entire platform.
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Brand
Partnerships: Continued investment in new product offerings for brand storytelling on Vocal with the goal of increasing the value
to brands in the form of analytics, audience engagement, and conversion data for their products and services. The Vocal for Brands
in-house content studio is constantly evolving in order to elevate brand relationships, both qualitatively and quantitatively.
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Licensing
and Transmedia Opportunities: In collaboration with other production and media companies, as well as with our expanding user
base, we look for content that can be leveraged for adaptation to film, television, digital shorts, books, and comic series. We believe
that Vocal’s ever-expanding community of creators and influencers affords us with the unique opportunity to cultivate these
relationships. This initiative is referred to by the Company as Recreatd.
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White
Label Opportunities: White-labeling Vocal’s underlying platform architecture can be utilized for application in a range
of industries, including use by sports franchises, trade companies, education organizations, companies in the financial sector, and
others. An example of a white label installation of Vocal currently on our drawing board is a platform called Give. The idea
behind Give is to borrow Vocal’s topic-specific community structure and adapt it for the non-profit sector. The Give platform
would function as a network of vetted, verified organizations for which creators can raise awareness, funding or discussions using
Vocal’s existing features like storytelling tools, community engagement, and microtransactions. Give will provide charities
with the tools and resources to capture attention and donations in what is a saturated non-profit space.
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Vocal
Global: Vocal Global is Creatd’s new market expansion strategy for applying Vocal’s technology to international platform
opportunities. While the U.S., U.K., and Canada represent the vast majority of our audience, we believe there will be significant
demand for our product in overseas markets–including Asia, the Middle East, and South America–particularly for foreign
language installations of the product, an initiative which Creatd refers to as “Content Without Borders.”
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Acquisition
Strategy
Creatd’s
hybrid finance and design culture is key to its acquisition strategy. Acquisition targets are companies that meet a set of opportunistic
or financial standards or that are part of specific digital environments that are accretive and can seamlessly integrate into Creatd’s
existing revenue lines. Creatd will continue to make strategic acquisitions when presented with opportunities that are in the interest
of shareholder value.
Recent
Developments
May
2021 Financing
On
May 14, 2021 (the “Effective Date”), the Company entered into a securities purchase agreement (the “Purchase Agreement”)
with three accredited investors (the “Investors”), whereby, at the closing, the Investors have agreed to purchase from the
Company (i) convertible notes in the aggregate principal amount of $4,666,668 (the “Notes”), inclusive of original issuance
discount, and (ii) 1,090,908 warrants (the “Warrants”) to purchase shares of the Company’s common stock. The Notes
have a maturity date of November 14, 2022, with monthly installment payments due beginning six months from the date of issuance of the
Notes. The Notes do not bear interest except in connection with a default, as described in the Notes. The Notes are convertible into
shares of Common Stock at a fixed price of $5.00 per share, subject to adjustment as set forth in the Notes. The Company received $4.0
million of gross proceeds from the sale of the Notes and the Warrants, reflecting an original issuance discount on the Notes of $666,668.
The
Warrants are exercisable for a term of five-years from the date of issuance, at an exercise price of $4.50 per share.
Pursuant
to the Purchase Agreement, promptly, but in any event no later than 15 business days, the Company agreed to prepare and file with the
SEC a registration statement covering the resale of the shares of Common Stock underlying the Notes and Warrants.
In
connection with the Purchase Agreement, the Company entered into that certain Security Agreement, granting a security interest in favor
of Lind Global Macro Fund, LP as agent for the Investors (“Security Agreement”); and that certain Trademark Security Agreement,
granting a security interest in certain trademark collateral in favor of Lind Global Macro Fund, LP as agent for the Investors (the “Trademark
Security Agreement”).
The
closing of the Purchase Agreement occurred on May 17, 2021.
Nasdaq
Letter of Reprimand
On
January 4, 2021, the Company received a letter from the staff of The Nasdaq Capital Market (the “Exchange”) notifying the
Company that the Exchange had determined to delist the Company’s common stock and warrants from the Exchange based on the Company’s
non-compliance with the Exchange’s (i) $5 million stockholders’ equity requirement for initial listing pursuant to Nasdaq
Listing Rule 5505(b), (ii) the $2.5 million stockholders’ equity requirement or any of the alternatives for continued listing pursuant
to Nasdaq Listing Rule 5550(b), and (iii) the Company’s failure to provide material information to the Exchange pursuant to Nasdaq
Listing Rule 5250(a)(1).
On
February 11, 2021, the Company met with the Exchange’s Hearings Panel (the “Panel”) with respect to such determination,
in accordance with the Exchange’s rules and, pursuant to such request by the Company to appeal, the delisting of the Company’s
securities and the Form 25 Notification of Delisting filing was stayed pending the Panel’s decision.
On
March 9, 2021, the Exchange notified the Company that the Panel had determined to continue the listing of the Company on the Exchange.
Notwithstanding the Panel’s determination to continue the listing of the Company’s securities on the Exchange, the Panel
issued a public reprimand letter to the Company, pursuant to Listing Rule 5815(c)(1)(D), based on its finding “that the Company
failed to meet the initial listing criteria with respect to stockholders’ equity and failed to provide Nasdaq with material information
with respect to that deficiency.” Specifically, the Panel found that the Company failed to comply with Listing Rule 5250(a)(1),
requiring it to notify Nasdaq of certain significant developments that led to the Company’s prior representations about its ability
to satisfy the initial listing requirements being inaccurate. In reaching its determination to continue the listing of the Company on
Nasdaq, the Panel acknowledged that the Company has since demonstrated compliance with the initial listing requirement for stockholders’
equity and all other applicable initial listing requirements. The Panel also determined that the violations were inadvertent and that
the Company had relied on advice of counsel at the time in its interactions with the Nasdaq staff (“Staff”). The Panel also
acknowledged the Company’s efforts to implement structural changes within the Company to avoid similar misstatements in the future
and that would allow for proper accounting and disclosure on an ongoing basis.
A
Panel Monitor has been implemented under Listing Rule 5815(d)(4)(A) for a period of one year from the date of the Letter. In the event
that the Company becomes deficient with respect to any continued listing requirement, the Company will not be afforded the opportunity
to submit a compliance plan for Staff’s consideration and Staff will issue a Delist Determination Letter and promptly schedule
a new hearing under Listing Rule 5810(c)(2), at which the Company may present a compliance plan for the Panel’s consideration.
In the event of a new hearing, any suspension or delisting action would be stayed pending the completion of the hearings process and
the expiration of any additional extension period granted by the Panel following the hearing.
Sale
of Series E Convertible Preferred Stock
On
December 29, 2020 (the “Effective Date”), the Company entered into securities purchase agreements (the “Purchase Agreement”)
with thirty-three accredited investors (the “Investors”), whereby, at the closing, the Investors have agreed to purchase
from the Company an aggregate of (i) 7,778 shares of the Company’s Series E Convertible Preferred Stock, par value $0.001 per share
(the “Series E Preferred Stock”); and (ii) 2,831,715 warrants (the “Warrants”) to purchase shares of the Company’s
common stock, par value $0.001 per share (the “Common Stock”). The Series E Preferred Stock is convertible into a total of
1,887,810 shares of Common Stock (the “Conversion Shares”). The combined purchase price of one Conversion Share and one and
a half Warrant was $4.12. The aggregate purchase price for the Series E Preferred Stock and Warrants was $7,777,777.77. The closing for
the purchase of 7,738 shares of Series E Preferred Stock, convertible into 1,878,101 shares of Common Stock, and 2,817,152 Warrants occurred
on between December 29 and December 31, 2020. The closing for the remaining 40 shares of Series E Preferred Stock, convertible into 9,709
shares of Common Stock, and 14,563 Warrants occurred on January 4, 2021.
Appointment
of New Director
On
October 27, 2020, the Board of the Company increased the size of the Board to six members and appointed LaBrena Martin to fill that newly-created
vacancy and serve as a member of the Board. In connection with her appointment to the Board, the Board appointed Ms. Martin to serve
as a member of the Audit and Compensation Committees and as the Chair of the Nominating and Corporate Governance Committee. Ms. Martin
will hold office until the next annual meeting of stockholders, or until her successor is duly elected and qualified or her earlier resignation
or removal.
Appointment
of Chief Operating Officer
Effective
September 28, 2020, the board of directors of the Company appointed Laurie Weisberg as Chief Operating Officer of the Company. Ms. Weisberg
also currently serves as a member of the Company’s board of directors.
Underwritten
Offering and Uplisting to Nasdaq
On
September 15, 2020, Company consummated an underwritten public offering (the “Offering”) of 1,725,000 units of securities
(the “Units”), with each Unit consisting of (i) one share of common stock, par value $0.001 per share, and (ii) one warrant
to purchase one share of Common Stock (the “Warrants”). The Offering was conducted pursuant to an Underwriting Agreement,
dated September 10, 2020, by and between the Company and The Benchmark Company, LLC, acting as the representative (the “Representative”)
of the several underwriters named therein (the “Underwriting Agreement”). In connection with the Offering, the Company granted
the underwriters a 45-day option to purchase up to 258,750 shares of Common Stock and/or 258,750 Warrants to purchase Common Stock to
cover over-allotments, if any.
The
public offering price per Unit was $4.50. The shares of Common Stock and Warrants were issued separately and are immediately separable
upon issuance. Each Warrant represents the right to purchase one share of Common Stock at an exercise price of $4.50 per share, expiring
5 years from the date of issuance.
On
September 15, 2020, the Company entered into a Warrant Agreement with Pacific Stock Transfer (“Pacific Stock”), appointing
Pacific Stock as Warrant Agent for the Warrants for purposes of the Offering (the “Warrant Agreement”). A registration statement
on Form S-1 (File No. 333-238514) relating to the Offering was initially filed with the U.S. Securities and Exchange Commission (the
“SEC”) on May 20, 2020 and was declared effective on September 10, 2020. Upon the closing of the Offering, Pacific Stock
issued the shares of Common Stock and Warrants comprising the Units, which trade on The Nasdaq Capital Markets under the symbols CRTD
and CRTDW, respectively. The gross proceeds to the Company from the Offering, before deducting underwriting discounts and commissions
and other estimated Offering expenses, and excluding the exercise of any Warrants, was approximately $7.7625 million.
On
October 6, 2020, the Underwriters partially exercised the over-allotment option and on October 8, 2020, purchased an additional 258,750
Warrants, generating gross proceeds, before deducting underwriting discounts and commissions, of $2,587.50.
The
258,750 Warrants were issued pursuant to the registration statement on Form S-1 (File No. 333-238514) initially filed with the U.S. Securities
and Exchange Commission on May 20, 2020 and declared effective on September 10, 2020.
Our
Corporate History
Creatd,
Inc., formerly Jerrick Media Holdings, Inc. (“we,” “us,” the “Company,” or “Creatd”),
is a technology company focused on the development of digital communities, marketing branded digital content, and e-commerce opportunities.
Creatd’s content distribution platform, Vocal, delivers a robust long-form, digital publishing platform organized into highly engaged
niche-communities capable of hosting all forms of rich media content. Through Creatd’s proprietary algorithm dynamics, Vocal enhances
the visibility of content and maximizes viewership, providing advertisers access to target markets that most closely match their interests.
The
Company was originally incorporated under the laws of the State of Nevada on December 30, 1999 under the name LILM, Inc. The Company
changed its name on December 3, 2013 to Great Plains Holdings, Inc. (“GTPH”) as part of its plan to diversify its business.
On
February 5, 2016 (the “Closing Date”), GTPH, GPH Merger Sub, Inc., a Nevada corporation and wholly-owned subsidiary of GTPH
(“Merger Sub”), and Jerrick Ventures, Inc., a privately-held Nevada corporation headquartered in New Jersey (“Jerrick”),
entered into an Agreement and Plan of Merger (the “Merger”) pursuant to which the Merger Sub was merged with and into Jerrick,
with Jerrick surviving as a wholly-owned subsidiary of GTPH (the “Merger”). GTPH acquired, pursuant to the Merger, all of
the outstanding capital stock of Jerrick in exchange for issuing Jerrick’s shareholders (the “Jerrick Shareholders”),
pro-rata, a total of 475,000 shares of GTPH’s common stock. In connection therewith, GTPH acquired 33,415 shares of Jerrick’s
Series A Convertible Preferred Stock (the “Jerrick Series A Preferred”) and 8,064 shares of Series B Convertible Preferred
Stock (the “Jerrick Series B Preferred”).
In connection with the Merger, on the Closing
Date, GTPH and Kent Campbell entered into a Spin-Off Agreement (the “Spin-Off Agreement”), pursuant to which Mr. Campbell
purchased from GTPH (i) all of GTPH’s interest in Ashland Holdings, LLC, a Florida limited liability company, and (ii) all of GTPH’s
interest in Lil Marc, Inc., a Utah corporation, in exchange for the cancellation of 39,091 shares of GTPH’s Common Stock held by
Mr. Campbell. In addition, Mr. Campbell assumed all debts, obligations and liabilities of GTPH, including any existing prior to the Merger,
pursuant to the terms and conditions of the Spin-Off Agreement.
Upon closing of the Merger on February 5,
2016, the Company changed its business plan to that of Jerrick.
Effective February 28, 2016, GTPH entered
into an Agreement and Plan of Merger (the “Statutory Merger Agreement”) with Jerrick, pursuant to which GTPH became the parent
company of Jerrick Ventures, LLC, a wholly-owned operating subsidiary of Jerrick (the “Statutory Merger”) and GTPH changed
its name to Jerrick Media Holdings, Inc. to better reflect its new business strategy.
On September 11, 2019, the Company acquired
100% of the membership interests of Seller’s Choice, LLC, a New Jersey limited liability company (“Seller’s Choice”).
Seller’s Choice is digital e-commerce agency based in New Jersey (see Note 4).
On September 9, 2020, the Company filed a
certificate of amendment with the Secretary of State of the State of Nevada to change our name to “Creatd, Inc.”, which became
effective on September 10, 2020.
Background of the Offering
See – “Recent Developments
– May 2021 Financing”
THE OFFERING
Issuer
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Creatd, Inc.
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|
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Shares of Common Stock offered by us
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None
|
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Shares of Common Stock offered by the Selling Stockholders
|
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2,024,242 Shares (1)
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Shares of Common Stock outstanding before the Offering
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10,989,566 shares (2)
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Shares of Common Stock outstanding after completion of this offering, assuming the sale of all shares offered hereby
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13,013,808 shares
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Use of proceeds
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We will not receive any proceeds from the resale of the common stock by the selling stockholders.
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Market for Common Stock
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Our common stock is listed on The Nasdaq Capital Market under the symbol “CRTD.”
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Risk Factors
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Investing in our securities involves a high degree of risk. See the “Risk Factors” section of this prospectus on page 12 and in the documents we incorporate by reference in this prospectus for a discussion of factors you should consider carefully before deciding to invest in our securities.
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(1)
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This amount consists of (i) 933,334 shares of Common Stock underlying the Notes (as defined in this prospectus) and (ii) 1,090,908 shares of Common Stock underlying the Warrants, issued to the Selling Stockholders in the May 2021 Financing.
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(2)
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The number of shares of Common Stock outstanding before and after the Offering is based on 10,989,566 shares outstanding as of May 14, 2021 and excludes the following:
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●
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2,350,062 shares of Common Stock issuable upon the exercise of outstanding stock options having a weighted average exercise price of $23.97 per share;
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●
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6,230,694 shares of common stock issuable upon the exercise of outstanding warrants having a weighted average exercise price of $4.96 per share;
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●
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60,285 shares of the Company’s common stock underlying convertible notes; and
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●
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449,938 shares of common stock reserved for future issuance under the Company’s 2020 Equity Incentive Plan (the “2020 Plan”).
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RISK FACTORS
Our business, financial condition, results of
operations, and cash flows may be impacted by a number of factors, many of which are beyond our control, including those set forth in
our most recent Annual Report on Form 10-K for the year ended December 31, 2020, the occurrence of any one of which could have a material
adverse effect on our actual results. There have been no material changes to the Risk Factors previously disclosed in our Annual Report
on Form 10-K for the year ended December 31, 2020.
USE OF PROCEEDS
All proceeds from the resale of the shares of
our Common Stock offered by this prospectus will belong to the Selling Stockholders. We will not receive any proceeds from the resale
of the shares of our Common Stock by the Selling Stockholders.
We will receive proceeds from any cash exercise
of the Warrants. If all such Warrants are fully exercised on a cash basis, we will receive gross cash proceeds of approximately $4.50
per Warrant exercised. We expect to use the proceeds from the exercise of such warrants, if any, for general corporate purposes. General
corporate purposes may include providing working capital, funding capital expenditures, or paying for acquisitions. We currently do not
have any arrangements or agreements for any acquisitions. We cannot precisely estimate the allocation of the net proceeds from any exercise
of the warrants for cash. Accordingly, in the event the Warrants are exercised for cash, our management will have broad discretion in
the application of the net proceeds of such exercises. There is no assurance that the Warrants will ever be exercised for cash.
PRIVATE PLACEMENT OF NOTES AND WARRANTS
On
May 14, 2021 (the “Effective Date”), the Company entered into a securities purchase agreement (the “Purchase Agreement”)
with three accredited investors (the “Investors”), whereby, at the closing, the Investors have agreed to purchase from the
Company (i) convertible notes in the aggregate principal amount of $4,666,668 (the “Notes”), inclusive of original issuance
discount, and (ii) 1,090,908 warrants (the “Warrants”) to purchase shares of the Company’s common stock. The Notes have
a maturity date of November 14, 2022, with monthly installment payments due beginning six months from the date of issuance of the Notes.
The Notes do not bear interest except in connection with a default, as described in the Notes. The Notes are convertible into shares of
Common Stock at a fixed price of $5.00 per share, subject to adjustment as set forth in the Notes. The Company received $4.0 million of
gross proceeds from the sale of the Notes and the Warrants, reflecting
an original issuance discount on the Notes of $666,668.
The Warrants are exercisable for a term of five-years
from the date of issuance, at an exercise price of $4.50 per share.
The representations and warranties contained in
the Purchase Agreement were made by the parties to, and solely for the benefit of, the other in the context of all of the terms and conditions
of the Purchase Agreement and in the context of the specific relationship between the parties. The provisions of the Purchase Agreement,
including the representations and warranties contained therein, are not for the benefit of any party other than the parties to the Purchase
Agreement. The Purchase Agreement is not intended for investors and the public to obtain factual information about the current state of
affairs of the parties.
Pursuant to the Purchase Agreement, promptly, but in any event no later
than 15 business days, the Company agreed to prepare and file with the U.S. Securities and Exchange Commission (the “SEC”)
a registration statement covering the resale of the shares of Common Stock underlying the Notes and Warrants.
In connection with the Purchase Agreement, the
Company entered into (a) that certain Security Agreement, granting a security interest in favor of Lind Global Macro Fund, LP as agent
for the Investors (“Security Agreement”); and (b) that certain Trademark Security Agreement, granting a security interest
in certain trademark collateral in favor of Lind Global Macro Fund, LP as agent for the Investors (the “Trademark Security Agreement”).
The closing of the Purchase Agreement occurred
on May 17, 2021.
The above disclosure contains only a brief description
of the material terms of the Purchase Agreement, the Notes, the Warrants, the Security Agreement, and the Trademark Security Agreement,
and does not purport to be a complete description of the rights and obligations of the parties thereunder, and such description is qualified
in its entirety by reference to the full text of the Purchase Agreement, the Notes, the Warrants, the Security Agreement, and the Trademark
Security Agreement, the forms of which are attached as Exhibits 10.1, 4.1, 4.2, 10.2, and 10.3, respectively, to the Quarterly Report
on Form 10-Q filed with the SEC on May 17, 2021, and are incorporated herein by reference.
SELLING STOCKHOLDERS
The shares of our Common Stock being offered by the Selling Stockholders
are issuable upon the conversion of the Notes and exercising of the Warrants. For additional information regarding the issuance of the
Notes and Warrants, see “May 2021 Financing” above. We are registering the shares of our Common Stock in order to permit the
Selling Stockholders to offer the shares for resale from time to time. Except as otherwise described in the footnotes to the
table below and for the ownership of the registered shares issued pursuant to the Purchase Agreement, neither the Selling Stockholders
nor any of the persons that control them has had any material relationships with us or our affiliates within the past three (3) years.
The table below lists the Selling Stockholders
and other information regarding the beneficial ownership (as determined under Section 13(d) of the Securities Exchange Act of 1934, as
amended (the “Exchange Act”) (and the rules and regulations thereunder) of the shares of our Common Stock by each of the Selling
Stockholders.
The second column lists the number of shares of
our Common Stock beneficially owned by each Selling Stockholder before this Offering (including shares which the Selling Stockholder
has the right to acquire within 60 days, including upon conversion of any convertible securities)
The third column lists the shares of our Common Stock being offered
by this prospectus by each Selling Stockholder.
The fourth and fifth columns list the number of
shares of Common Stock beneficially owned by each Selling Stockholder and their percentage ownership after the Offering (including shares
which the Selling Stockholder has the right to acquire within 60 days, including upon conversion of any convertible securities), assuming
the sale of all of the shares offered by each Selling Stockholder pursuant to this prospectus.
Under the terms of the Notes and the Warrants,
a Selling Stockholder may not convert the Notes or exercise the Warrants to the extent such conversion or exercise would cause such Selling
Stockholder, together with any other person with which the Selling Stockholder is considered to be part of a group under Section 13 of
the Exchange Act or with which the Selling Stockholder otherwise files reports under Section 13 and/or 16 of the Exchange Act, to beneficially
own a number of shares of Common Stock which exceeds 4.99% or 9.99%, as applicable, of the Equity Interests of a class that is registered
under the Exchange Act that is outstanding at such time. The number of shares in the third column does not reflect this limitation.
The amounts and information set forth below are
based upon information provided to us by the Selling Stockholders as of May 14, 2021, except as otherwise noted below. The Selling Stockholders
may sell all or some of the shares of Common Stock it is offering, and may sell, unless indicated otherwise in the footnotes below, shares
of our common stock otherwise than pursuant to this prospectus. The tables below assume the Selling Stockholders sell all of the shares
offered by them in offerings pursuant to this prospectus, and do not acquire any additional shares. We are unable to determine the exact
number of shares that will actually be sold or when or if these sales will occur.
Selling Stockholder
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Number of Shares Owned Before Offering (1)
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Shares Offered
Hereby
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Number of Shares Owned
After Offering
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Percentage of
Shares
Beneficially
Owned After
Offering(1)
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Lind Global Macro Fund, LP (2)
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0
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1,518,182
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0
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0.00
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%
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Brio Capital Master Fund, Ltd. (3)
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395,508
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253,030
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395,508
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0.03
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%
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L1 Capital Global Opportunities Master Fund (4)
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243,472
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253,030
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243,472
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0.02
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%
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(1)
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Percentages are calculated based on an aggregate of 10,989,566 shares of Common Stock outstanding as of May 14, 2021. As applicable, such percentages have been further adjusted to account for outstanding convertible securities of such Selling Stockholder.
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(2)
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Represents 700,000 shares of common stock issuable upon conversion of the Notes and 818,182 shares of common stock issuable upon exercise of the Warrants. These securities are owned directly by Lind Global Macro Fund, LP. Lind Global Partners LLC, the general partner of Lind Global Macro Fund, LP, may be deemed to have sole voting and dispositive power with respect to the securities held by Lind Global Macro Fund, LP. Jeff Easton, the managing member of Lind Global Partners LLC, may be deemed to have sole voting and dispositive power with respect to the securities held by Lind Global Macro Fund, LP.
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(3)
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Number of Shares owned before offering includes 37,418 shares of common stock, 69,903 shares issuable upon the conversion of Series E Preferred stock, and 288,187 shares issuable upon the exercise of Warrants. Shares offered herein represents 116,667 shares of common stock issuable upon conversion of the Notes, and 136,363 shares of common stock issuable upon exercise of Warrants. Brio Capital Management LLC, is the investment manager of Brio Capital Master Fund Ltd. and has the voting and investment discretion over securities held by Brio Capital Master Fund Ltd. Shaye Hirsch, in his capacity as Managing Member of Brio Capital Management LLC, makes voting and investment decisions on behalf of Brio Capital Management LLC in its capacity as the investment manager of Brio Capital Master Fund Ltd.
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(4)
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Number of Shares owned before offering includes 243,472 shares of common stock issuable upon exercise of the Warrants. Shares offered herein represents 116,667 shares of common stock issuable upon conversion of the Notes, and 136,363 shares of common stock issuable upon exercise of the Warrants. David Feldman is a director of L1 Capital Global Opportunities Master Fund and may be deemed to having voting and investment power over the securities listed in the table above. Such Selling Stockholder’s address is 161A Shedden Road, 1 Artillery Court, PO Box 10085, Grand Cayman KY1-1001, Cayman Islands.
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LEGAL MATTERS
Lucosky Brookman LLP will pass upon certain legal
matters relating to the issuance and sale of the securities offered hereby on behalf of Creatd, Inc.
EXPERTS
Our consolidated balance sheets as of December
31, 2020 and 2019, and the related consolidated statements of operations, stockholders’ equity (deficit), and cash flows for each
of those two years have been audited by Rosenberg Rich Baker Berman, P.A., an independent registered public accounting firm, as set forth
in its report incorporated by reference and are included in reliance upon such report given on the authority of such firm as experts in
accounting and auditing.
WHERE YOU CAN FIND MORE INFORMATION
Available Information
We file reports, proxy statements and other information
with the SEC. Information filed with the SEC by us can be inspected and copied at the Public Reference Room maintained by the SEC at 100
F Street, N.E., Washington, D.C. 20549. You may also obtain copies of this information by mail from the Public Reference Room of the SEC
at prescribed rates. Further information on the operation of the SEC’s Public Reference Room in Washington, D.C. can be obtained
by calling the SEC at 1-800-SEC-0330. The SEC also maintains a web site that contains reports, proxy and information statements and other
information about issuers, such as us, who file electronically with the SEC. The address of that website is http://www.sec.gov.
Our website address is https://creatd.com. The
information on our website, however, is not, and should not be deemed to be, a part of this prospectus.
This prospectus and any prospectus supplement
are part of a registration statement that we filed with the SEC and do not contain all of the information in the registration statement.
The full registration statement may be obtained from the SEC or us, as provided below. Forms of the documents establishing the terms of
the offered securities are or may be filed as exhibits to the registration statement. Statements in this prospectus or any prospectus
supplement about these documents are summaries and each statement is qualified in all respects by reference to the document to which it
refers. You should refer to the actual documents for a more complete description of the relevant matters. You may inspect a copy of the
registration statement at the SEC’s Public Reference Room in Washington, D.C. or through the SEC’s website, as provided above.
INCORPORATION BY REFERENCE
The SEC’s rules allow us to “incorporate
by reference” information into this prospectus, which means that we can disclose important information to you by referring you to
another document filed separately with the SEC. The information incorporated by reference is deemed to be part of this prospectus, and
subsequent information that we file with the SEC will automatically update and supersede that information. Any statement contained in
a previously filed document incorporated by reference will be deemed to be modified or superseded for purposes of this prospectus to the
extent that a statement contained in this prospectus modifies or replaces that statement.
We incorporate by reference our documents listed
below and any future filings made by us with the SEC under Sections 13(a), 13(c), 14 or 15(d) of the Securities Exchange Act of 1934,
as amended, which we refer to as the “Exchange Act” in this prospectus, between the date of this prospectus and the termination
of the offering of the securities described in this prospectus. We are not, however, incorporating by reference any documents or portions
thereof, whether specifically listed below or filed in the future, that are not deemed “filed” with the SEC, including any
information furnished pursuant to Items 2.02 or 7.01 of Form 8-K or related exhibits furnished pursuant to Item 9.01 of Form 8-K.
This prospectus and any accompanying prospectus
supplement incorporate by reference the documents set forth below that have previously been filed with the SEC:
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Our Annual Report on Form 10-K for the year ended December 31, 2020, filed with the SEC on March 31, 2021.
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●
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Our Quarterly Report on Form 10-Q for the quarter ended March 31, 2021, filed with the SEC on May 17, 2021.
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●
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Our Current Reports on Form 8-K filed with the
SEC on January 5, 2021,
January 8, 2021, February
2, 2021, February 17, 2021,
and March 12, 2021.
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●
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The description of our Common Stock contained
in our Registration Statement on Form 8-A, filed with the SEC on September 9, 2020, and any amendment or report filed with the SEC
for the purpose of updating the description.
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All reports and other documents we subsequently
file pursuant to Section 13(a), 13(c), 14 or 15(d) of the Exchange Act prior to the termination of this Offering, including all such documents
we may file with the SEC after the date of the initial registration statement and prior to the effectiveness of the registration statement,
but excluding any information furnished to, rather than filed with, the SEC, will also be incorporated by reference into this prospectus
and deemed to be part of this prospectus from the date of the filing of such reports and documents.
You may request a free copy of any of the documents
incorporated by reference in this prospectus (other than exhibits, unless they are specifically incorporated by reference in the documents)
by writing or telephoning us at the following address:
Creatd, Inc.
2050 Center Avenue Suite 640
Fort Lee, NJ 07024
Telephone: (201) 258-3770
Exhibits to the filings will not be sent, however,
unless those exhibits have specifically been incorporated by reference in this prospectus and any accompanying prospectus supplement.
PART II
INFORMATION NOT REQUIRED IN PROSPECTUS
Item 14. Other Expenses of Issuance and Distribution.
The following is an estimate of the expenses (all
of which are to be paid by the registrant) that we may incur in connection with the securities being registered hereby.
SEC registration fee
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$
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842
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Legal fees and expenses
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$
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169,509
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*
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Accounting fees and expenses
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7,500
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*
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Total
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|
$
|
177,851
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*
|
Item 15. Indemnification of Directors and Officers.
Each of our Second Amended and Restated Articles
of Incorporation and our Amended and Restated Bylaws provide for indemnification of our directors and officers. Our Amended and Restated
Bylaws provide that we will indemnify any person who was or is a party or threatened to be made a party to any threatened, pending or
completed action, suit or proceeding, whether civil, criminal, administrative (other than an action by or in the right of the corporation)
by reason of the fact that such person is or was a director or officer of the corporation, against expenses (including attorney’s
fees), judgments, fines and amounts paid in settlement actually and reasonably incurred by such person in connection with such action,
suit or proceeding if such person acted in good faith and in a manner such person reasonably believed to be in or not opposed to the best
interests of the Company, and with respect to any criminal action or proceeding, had no reasonable cause to believe such person’s
conduct was unlawful. The termination of any action, suit or proceeding by judgment, order, settlement, conviction, or upon a plea of nolo
contendere or its equivalent will not, without more, create a presumption that the person did not act in good faith and in a
manner which such person reasonably believed to be in or not opposed to the best interest of the corporation, and, with respect to any
criminal action or proceeding, had reasonable cause to believe that his conduct was unlawful. The Company may by action of its Board of
Directors, grant rights to indemnification and advancement of expenses to employees and agents of the Company with the same scope and
effects as the indemnification provisions for officers and directors.
Insofar as indemnification for liabilities under
the Securities Act may be permitted to officers, directors or persons controlling the Company pursuant to the foregoing provisions, the
Company has been informed that is it is the opinion of the Securities and Exchange Commission that such indemnification is against public
policy as expressed in such Securities Act and is, therefore, unenforceable.
Item 16. Exhibits.
(a) Exhibits
A list of exhibits filed with this registration
statement on Form S-3 is set forth on the Exhibit Index and is incorporated herein by reference.
Item 17. Undertakings.
The undersigned registrant hereby undertakes:
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(1)
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To file, during any period in which offers or sales are being made, a post-effective amendment to this registration statement:
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|
(i)
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To include any prospectus required by Section 10(a)(3) of the Securities Act of 1933;
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|
(ii)
|
To reflect in the prospectus any facts or events arising after the effective date of the registration statement (or the most recent post-effective amendment thereof) which, individually or in the aggregate, represent a fundamental change in the information set forth in the registration statement. Notwithstanding the foregoing, any increase or decrease in volume of securities offered (if the total dollar value of securities offered would not exceed that which was registered) and any deviation from the low or high end of the estimated maximum offering range may be reflected in the form of prospectus filed with the Commission pursuant to Rule 424(b) if, in the aggregate, the changes in volume and price represent no more than a 20 percent change in the maximum aggregate offering price set forth in the “Calculation of Registration Fee” table in the effective registration statement; and
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|
(iii)
|
To include any material information with respect to the plan of distribution not previously disclosed in the registration statement or any material change to such information in the registration statement.
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|
(2)
|
That for the purpose of determining any liability under the Securities Act of 1933 each such post-effective amendment shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof.
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|
(3)
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To remove from registration by means of a post-effective amendment any of the securities being registered which remain unsold at the termination of the offering.
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|
(4)
|
That, for the purpose of determining liability under the Securities Act of 1933 to any purchaser, each prospectus filed pursuant to Rule 424(b) as part of a registration statement relating to an offering, other than registration statements relying on Rule 430B or other than prospectuses filed in reliance on Rule 430A, shall be deemed to be part of and included in the registration statement as of the date it is first used after effectiveness. Provided, however, that no statement made in a registration statement or prospectus that is part of the registration statement or made in a document incorporated or deemed incorporated by reference into the registration statement or prospectus that is part of the registration statement will, as to a purchaser with a time of contract of sale prior to such first use, supersede or modify any statement that was made in the registration statement or prospectus that was part of the registration statement or made in any such document immediately prior to such date of first use.
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|
(5)
|
That, for the purpose of determining liability
of the registrant under the Securities Act of 1933 to any purchaser in the initial distribution of the securities:
The undersigned registrant undertakes that in
a primary offering of securities of the undersigned registrant pursuant to this registration statement, regardless of the underwriting
method used to sell the securities to the purchaser, if the securities are offered or sold to such purchaser by means of any of the following
communications, the undersigned registrant will be a seller to the purchaser and will be considered to offer or sell such securities to
such purchaser:
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(i)
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Any preliminary prospectus or prospectus of the undersigned registrant relating to the offering required to be filed pursuant to Rule 424;
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(ii)
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Any free writing prospectus relating to the offering prepared by or on behalf of the undersigned registrant or used or referred to by the undersigned registrant;
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(iii)
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The portion of any other free writing prospectus relating to the offering containing material information about the undersigned registrant or its securities provided by or on behalf of the undersigned registrant; and
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(iv)
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Any other communication that is an offer in the offering made by the undersigned registrant to the purchaser.
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(6)
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The undersigned Registrant hereby undertakes to provide to the underwriters at the closing specified in the underwriting agreement certificates in such denominations and registered in such names as required by the underwriters to permit prompt delivery to each purchaser.
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(7)
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Insofar as indemnification for liabilities arising under the Securities Act may be permitted to directors, officers and controlling persons of the Registrant pursuant to the provisions described in Item 14 above, or otherwise, the Registrant has been advised that in the opinion of the SEC such indemnification is against public policy as expressed in the Securities Act and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by the Registrant of expenses incurred or paid by a director, officer or controlling person of the Registrant in the successful defense of any action, suit or proceeding) is asserted by such director, officer or controlling person in connection with the securities being registered, the registrant will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the Securities Act and will be governed by the final adjudication of such issue.
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(8)
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The undersigned Registrant hereby undertakes:
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(1)
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That for purposes of determining any liability under the Securities Act, the information omitted from the form of prospectus filed as part of this registration statement in reliance upon Rule 430A and contained in a form of prospectus filed by the Registrant pursuant to Rule 424(b)(1) or (4), or 497(h) under the Securities Act shall be deemed to be part of this registration statement as of the time it was declared effective.
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(2)
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That for the purpose of determining any liability under the Securities Act, each post-effective amendment that contains a form of prospectus shall be deemed to be a new registration statement relating to the securities offered therein, and this offering of such securities at that time shall be deemed to be the initial bona fide offering thereof.
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SIGNATURES
Pursuant to the requirements of the Securities
Act of 1933, as amended, the registrant certifies that it has reasonable grounds to believe that it meets all of the requirements for
filing on Form S-3 and has duly caused this registration statement to be signed on its behalf by the undersigned, thereunto duly authorized,
in the City of Fort Lee, State of New Jersey, on June 7, 2021.
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Creatd, Inc.
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By:
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/s/ Jeremy Frommer
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Name: Jeremy Frommer
Title: Chief Executive Officer
(Principal Executive Officer)
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POWER OF ATTORNEY: KNOW ALL PERSONS BY THESE PRESENTS
that each individual whose signature appears below constitutes and appoints Jeremy Frommer, his true and lawful attorneys-in-fact and
agents with full power of substitution, for him and in his name, place and stead, in any and all capacities, to sign any and all amendments
(including post-effective amendments) to this Registration Statement, and to sign any registration statement for the same offering covered
by the Registration Statement that is to be effective upon filing pursuant to Rule 462(b) promulgated under the Securities Act, and all
post-effective amendments thereto, and to file the same, with all exhibits thereto and all documents in connection therewith, with the
Securities and Exchange Commission, granting unto said attorneys-in-fact and agents, and each of them, full power and authority to do
and perform each and every act and thing requisite and necessary to be done in and about the premises, as fully to all intents and purposes
as he or she might or could do in person, hereby ratifying and confirming all that said attorneys-in-fact and agents or any of them, or
his, her or their substitute or substitutes, may lawfully do or cause to be done or by virtue hereof.
Pursuant to the requirements of the Securities
Act of 1933, this Registration Statement has been signed by the following persons in the capacities and on the dates indicated:
Signature
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Title
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Date
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/s/ Jeremy Frommer
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Chief Executive Officer
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June 7, 2021
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Jeremy Frommer
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(Principal Executive Officer), Director
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/s/ Chelsea Pullano
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Chief Financial Officer
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June 7, 2021
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Chelsea Pullano
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(Principal Financial and Accounting Officer)
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/s/ Mark Standish
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Chairman of the Board
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June 7, 2021
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Mark Standish
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/s/ Mark Patterson
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Director
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June 7, 2021
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Mark Patterson
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/s/ Leonard Schiller
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Director
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June 7, 2021
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Leonard Schiller
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/s/ Laurie Weisberg
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Director
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June 7, 2021
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Laurie Weisberg
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/s/ LaBrena Martin
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Director
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June 7, 2021
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LaBrena Martin
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