Creatd, Inc. (OTCQB:CRTD), a prominent digital technology innovator and creator-centric platform based in New York City, has announced its intention to acquire Tami Ventures Inc., a distinguished portfolio company specializing in technology, advertising, media, and information sectors, all based in the United States.
Solidifying Commitment with a Binding Letter of Intent
The two companies have entered into a binding Letter of Intent (LOI) to underscore their dedication to the acquisition.
In a demonstration of their seriousness and commitment to the transaction, both parties have agreed upon a breakup fee of $500,000.
This fee serves as a measure payable by either party in the event of withdrawal from the agreement under specific conditions, further ensuring the commitment to the deal.
Proposed Acquisition Structure
The acquisition is proposed to be an all-preferred shares transaction, with Creatd welcoming TAMI Ventures as a wholly owned subsidiary.
As part of the agreement, Creatd will issue 2-year restricted preferred shares to TAMI Ventures shareholders, valuing the aggregate transaction at $23 million.
The price per share will be determined prior to the close of the transaction, thereby safeguarding common shareholders from dilution.
Expanding Portfolio with Innovative Technology Platforms
Tami Ventures brings to the table a diverse portfolio of in-house developed, proprietary technology platforms.
These platforms span various sectors, including social media, sports betting, fantasy sports, eSports, racing, virtuals, lotteries, casino slots, and table games, adding significant value and diversity to Creatd’s existing offerings.
Targeting Growth Opportunities in Sports Betting
Following the acquisition, the combined entity will set its sights on the burgeoning sports betting market, capitalizing on its substantial growth potential.
The move aligns with industry trends, with a record $119.84 billion wagered in the United States in 2023, as reported by the American Gaming Association.
Leveraging Tami Ventures’ expertise in this area, coupled with Creatd’s existing assets, the company aims to drive growth synergies across its business segments.
Expanding into Gaming Social Media
In addition to the focus on the sports betting market, Creatd plans to continue expanding its Vocal platform, a social media technology subsidiary.
The integration of these platforms will pave the way for the launch of an innovative gaming social media platform. This platform will empower digital influencers and content creators, tapping into the lucrative intersection of gaming and social media.
Powered by a partnership with Vocal, this initiative promises to be a game-changer in the digital landscape.
Conclusion
The acquisition of Tami Ventures represents a strategic move for Creatd, Inc., as it seeks to diversify its portfolio, capitalize on growth opportunities in the sports betting market, and expand its presence in the digital technology landscape.
With a focus on innovation and synergy, Creatd is poised to unlock new avenues for growth and value creation in the evolving digital economy.
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