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NEW YORK, Sept. 2, 2022 /PRNewswire/ -- Creatd, Inc. (Nasdaq CM: CRTD) ("Creatd" or the "Company"), today announced that it has received a letter from Nasdaq notifying the Company of the Nasdaq Hearings Panel's decision to delist the Company's stock as the Company did not meet the $2.5 million stockholders' equity requirement for continued listing prescribed in Listing Rule 5550(b). As of the opening of business September 7, 2022, the Company's stock will no longer trade on Nasdaq. The Company is applying to have its stock quoted on the OTCQB marketplace effective on that same date. Management expects to file an appeal with Nasdaq within the prescribed time period, complete its Rights Offering, and apply for immediate reinstatement on Nasdaq.
Said Founder and Executive Chairman Jeremy Frommer, "While we are terribly disappointed by the Nasdaq's decision, we expect to have our Rights Offering repriced and effective next week and will rapidly appeal this decision in good standing with the stockholders' equity requirement. The Company has brought its operating expenses down significantly over the last 60 days to under $3 million per quarter. While revenue expectations of $1.25 to $1.5 million for third quarter show exponential revenue growth year over year, the Company has brought its monthly cash burn to approximately $600K per month. I remain confident in our business model and our ability to fill our financial obligations irrespective of this development. We will either prevail and be reinstated to Nasdaq, or we will move to the private sector. I have already begun productive discussions regarding alternative financing from the private market. The Company remains in discussions regarding asset sales as the data continues to demonstrate that, at current valuations, the individual components are worth more than the sum."
Continued Mr. Frommer, "The market conditions and the Nasdaq's lack of flexibility over the past few years have not been conducive to success and the spirit of entrepreneurialism that we had initially sought on the exchange. My goal is to create long-term value for our shareholders and if the Nasdaq is not the right environment, then we will endeavor to find one that accomplishes that goal. Creatd has matured into a technology company with a scalable business model. Our return on marketing is multiples of our spend. Our operational costs have never been leaner with a staff of 30. With the success of our upcoming financings, we will increase the marketing budget and attempt to achieve cash flow breakeven by third quarter, 2023. We expect the monthly burn of $600K to be reduced by nearly 50% by the start of second quarter, 2023, and revenues to exceed $2 million a quarter by that same timeframe. We expect to double revenues again FY 2023 over FY 2022. We will continue to do our best to update the market on a regular basis on our financial and business progress."
Posted In: CRTD
