Proposed transaction consists of a combination of cash and equity in Creatd, Inc.
Company expects the transaction will be immediately accretive to earnings.
FORT LEE, N.J., June 16, 2021 /PRNewswire/ -- Creatd, Inc. (Nasdaq CM: CRTD) ("Creatd" or the "Company"), the parent company of Vocal, today announced that it has entered into a memorandum of understanding ("MOU") to acquire a 55% ownership stake in WHE Agency ("WHE"), through its wholly-owned subsidiary, Creatd Partners. WHE Agency is a talent management and public relations agency dedicated to the representation and management of family and lifestyle-focused digital creators and influencers. Bringing the WHE talent roster into the Creatd family is expected to benefit both Vocal and WHE's creator networks.
The proposed transaction, which consists of $275,000 in cash and $660,000 in stock, is expected to be immediately accretive to Creatd's earnings following its closing. The Company expects to execute definitive agreements in early third quarter 2021, subject to the completion of due diligence and other closing conditions. After closing, Creatd will begin to recognize WHE Agency's revenues in its consolidated financial statements.
Creatd CEO Jeremy Frommer commented, "This announcement marks a key moment in furthering our corporate strategy, by expanding our tools and resources for creators while securing incremental revenue streams and value creation opportunities for our businesses. Acquisitions such as the one reflected in this MOU have the effect of generating compounded revenues for both companies. We expect the definitive agreement for this transaction to be executed in July of this year and, over the next 12 months, we expect WHE Agency will contribute over $1 million in agency-related net revenues.
"Within the Vocal network, we have some great creators who, over the years, have elevated their craft and have been consistently rewarded for their creativity. Exposure to WHE's bench of talent representatives and brand relationships adds a new dimension of opportunity to the talented creators on the Vocal platform and throughout the Creatd ecosystem. WHE's roster of talent will gain access to Vocal's distribution outlets as well as capital and resources with which to leverage their personal brands for new opportunities."
Commented Tracy Willis, founding partner of the WHE Agency, "Our emphasis has always been on accelerating visibility and impact for our talent. Now, we can do that even more. We take great pride in working closely with our creator network to maximize their creative output while, at the same time, taking great care to ensure they are matched with the ideal brands. Our work represents the very best of today's influencer economy. With the added support of Creatd's cutting edge technology and existing relationships with brands in the family and lifestyle space, both Creatd and WHE are positioned for win-win collaborations."
Tracy Willis, who co-founded the WHE Agency with Kenn Henman, comes from over 15 years of experience in public relations and talent representation, including Vice President at Gushcloud Talent Agency, where she oversaw all digital creator talent. Ms. Willis went on to establish the WHE Agency, where she continues to represent and connect top digital creators with leading brands and global audiences. Following the close of the proposed transaction with Creatd, Ms. Willis will assume the role of CEO of WHE, overseeing all daily operations and directing all talent and related brand opportunities; she will report directly to Creatd's CEO, Jeremy Frommer.
Currently, the WHE Agency represents talent such as: actress and broadway singer Christy Carlson Romano; Tiffani Rose Beaston, co-creator of the Beauty & The Beastons Youtube channel; Jessica Skube, creator of the YouTube channel JesssFam; and Kyra Sivertson, creator of the OKbaby YouTube channel and @okbabyyt Instagram account.
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. We accomplish this through Creatd's three main business pillars: Vocal Ventures, Creatd Partners and Recreatd. For news and updates, subscribe to Creatd's newsletter: https://creatd.com/newsletter
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About WHE Agency
WHE Agency is a leading influencer talent management and public relations firm, focusing primarily on representing and managing influencers and digital creators within the parenting, family, and lifestyle categories. For more information, visit: https://www.wheagency.com/.
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SOURCE Creatd, Inc.