Creatd Announces Memorandum of Understanding to Purchase Majority Stake in Direct-to-Consumer Beverage Brand, Dune Glow Remedy

FORT LEE, N.J., Aug. 2, 2021 /PRNewswire/ -- Creatd, Inc. (Nasdaq CM: CRTD) ("Creatd" or the "Company"), the parent company of Vocal, today announced the launch of Dune Glow Remedy ("Dune"), a direct-to-consumer brand focused on promoting wellness through its range of health-oriented beverages. The Company has additionally announced that it has entered into a Memorandum of Understanding ("MOU") to acquire a majority equity stake in Dune.

Pursuant to the MOU, Creatd intends to acquire a 50.4% equity stake in Dune in exchange for a combination of cash and stock. The Company expects to execute definitive agreements early in the fourth quarter 2021 and to close shortly thereafter, subject to the completion of due diligence and other closing conditions. After closing, Creatd will begin recognizing Dune's revenues in its consolidated financial statements. Dune is expected to generate between $500,000 to $1 million in net revenues over the next 12 months.

Commented Creatd CEO Jeremy Frommer, "We are working to finalize our purchase of a majority stake of Dune, as well as that of Wobble Wedge, as announced last week. Together with Plant Camp, Creatd's first acquisition in the e-commerce category, these transactions represent a strong portfolio of majority-owned DTC brands, all of which can benefit from direct access to Creatd's resources, technology, and marketing expertise. We are confident that, with Creatd's support, these brands can materially grow revenues in a cost-efficient, timely, and scalable way, leveraging Vocal's powerful network and first-party data to identify and activate an enthusiastic and loyal consumer base."

The idea for Dune came after its founders, Tom Punch, Stephanie Roy Dufault, and Mark De Luca, identified an opportunity in an emerging area of the functional beverage space: beauty. As a whole, the functional beverage market has risen exponentially, having grown 360% since last year as compared to 9% for the rest of the beverage market, according to Bloomberg. However, the market has seen recent growth particularly in the 'beauty from within' segment, referring to food and drink products specifically designed for cosmetic purposes, suggesting increasing awareness among consumers of the impact of nutrition on one's physical appearance.

Dune's beverages are meticulously crafted with functional ingredients that nourish skin from the inside out and enhance one's natural glow. Explained Ms. Roy Dufault, "The link between inner health and outer beauty has never been so clear. Our unique beauty drink is designed not only to make your skin glow but to foster that magic self-care moment we all deserve."

Tom Punch brings more than a decade of experience of immersion in the creator landscape and unlocking value for high-growth consumer, internet, technology brands. Prior to co-founding Dune, Mr. Punch was a lead executive for YouTube giant WatchMojo, where he was actively involved in strategic partnerships and corporate development. In his time there, Mr. Punch helped turn WatchMojo into one of the leading youth-oriented media brands in North America. Stephanie Roy Dufault has over a decade of communication experience, specifically in the beauty and fashion market, where she developed a keen understanding of brand and influencer partnerships.

Commented Mr. Punch, "As someone who has developed and launched numerous internet consumer brands over the years, I have had unique visibility into the necessity of disruptive marketing. Having the support of Creatd, and access to their extensive resources and expertise, means that an entrepreneur like myself can significantly cut down on cost and time to market, and reach Dune's target consumers faster and with greater impact."

About Creatd

Creatd, Inc. (Nasdaq CM: CRTD) is a creator-first technology company and the parent company of the Vocal platform. Our mission is to empower creators, entrepreneurs, and brands through technology and partnership.

For news and updates, subscribe to Creatd's newsletter: https://creatd.com/newsletter

Investor Relations Contact: [email protected]

Forward-Looking Statements

Any statements that are not historical facts and that express, or involve discussions as to, expectations, beliefs, plans, objectives, assumptions or future events or performance (often, but not always, indicated through the use of words or phrases such as "will likely result," "are expected to," "will continue," "is anticipated," "estimated," "intends," "plans," "believes" and "projects") may be forward-looking and may involve estimates and uncertainties which could cause actual results to differ materially from those expressed in the forward-looking statements. We caution that the factors described herein could cause actual results to differ materially from those expressed in any forward-looking statements we make and that investors should not place undue reliance on any such forward-looking statements. Further, any forward-looking statement speaks only as of the date on which such statement is made, and we undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of anticipated or unanticipated events or circumstances. New factors emerge from time to time, and it is not possible for us to predict all of such factors. Further, we cannot assess the impact of each such factor on our results of operations or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. This press release is qualified in its entirety by the cautionary statements and risk factor disclosure contained in our Securities and Exchange Commission filings.

SOURCE Creatd, Inc.

Related Links

https://creatd.com/