Pursuant to the offering, majority of Creatd's (OTC:CRTD) convertible debt has extended its maturity to March 31, 2023, while the conversion price and exercise price of the associated warrants were reset.
The company entered into a definitive agreement with the holders of the convertible debt for the sale of 4M shares of common stock with attached warrants to purchase 4M shares of common stock. The warrants have a five-year term and are exercisable at $0.20/share.
The purchase price for one common and one warrant is $0.20.
The extension gives the company ample time to complete its strategic restructuring and progress its ongoing discussions on the sale of certain assets and the spin-off of its media library, the OG Collection.
Creatd (OTC:CRTD) has been actively executing a holistic restructuring plan with the aim of reducing operating expenses while raising the necessary capital to scale the business and recover shareholder value.
It has also executed an austerity program over the last several weeks which includes a 40% decrease in headcount, as well as a considerable reduction of salaries for current employees on a go-forward basis. Cost-cutting efforts are also in place to eliminate some of the operating expenses.