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Creatd, Inc. (CRTD) stock is falling today: Why is it so?

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Creatd, Inc. (CRTD) stock announced the pricing of a public offering of its common stock after which the CRTD stock happened to be red and stock price saw a downtrend of 15.74% a share as of this writing. The stock went high in the previous trading session and closed with a 4.03% gain. Let’s discuss more about the CRTD stock.

What’s Happening?

The announcement of a public offering by the Creatd stock is the main culprit behind the falling CRTD stock price. According to the public offering, 750,000 shares of the CRTD’s common stock would be offered at a per-share price of $3.40 which means that the offering would produce roughly$2.6 million in total. Creatd stock might sell 15% or 112,500 additional shares of its common stock via granting the 30-day option to underwriters. After meeting the customary closing conditions, the offering would expect to end on June 21, 2021. The net proceeds are estimated to be approximately $2.4 million after the deduction of underwriting discounts and commissions. The net proceeds would be used for general corporate purposes by the CRTD stock.

Creatd, Inc to acquire 55% WHE Agency:

Yesterday on June 16, 2021, CRTD stock did announce that it has signed the memorandum of understanding via its wholly owned subsidiary Creatd Partners for the acquisition of a 55% ownership stake in the WHE agency. $275,000 in cash $660,000 in stock was specified for this proposed transaction. Creatd stock intends to carry out the definitive agreements in the early phase of the third quarter of 2021.

The memorandum has expanded the corporate strategy of the Creatd stock via the expansion of its tools and resources for creators. According to the management, the acquisition will benefit both companies in terms of revenues, and WHE is expected to contribute more than $1 million in agency-related net revenue in the next year.

Launch of ‘Fiction’, a Vocal Community:

About a week ago, Creatd stock made an announcement of launching the new ‘Fiction’ community on vocals.The purpose of this launch is to showcase the imaginative work of creators. Furthermore, the CRTD stock also announced the world’s first crowdfunding book publisher, Unbound as its official supporter of the Fiction community.

Conclusion:

The announcement of public offering is the obvious reason for the falling CTRD stock price. Such rises and falls don’t affect the long-term investors who mainly eye on the stock’s fundamentals, balance sheet, and future developments.

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