Victory Square Technologies Inc (CSE:VST, OTCQX:VSQTF) said it has signed a share purchase agreement to invest in Vancouver-based technology company Shop and Shout Ltd, doing business as Creator.co.
Creator.co is a fully automated platform that connects brands with creators to drive awareness, content and conversions over social media platforms like Instagram, Facebook, Twitter, YouTube and TikTok.
The platform is ranked among the Top 5 influencer platforms by Influencer Marketing Hub, according to Victory Square. It has attracted over 110,000 influencers that in turn reach over 100 million individuals. Creators on the platform have worked with leading brands like Walmart, Crayola, Rakuten Advertising and District Ventures.
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Victory Square said it will purchase and subscribe for 1,052,941 shares in Creator.co in consideration for C$1 million, with 352,941 shares purchased at C$0.85 per share and another 700,000 shares purchased at C$1. In turn, Victory Square will issue 1 million shares in the capital of the company at a deemed price per share of C$1.
Additionally, the company will also grant certain top-ups payable in additional Victory Square shares or in cash in the event the value of the Victory Square shares as determined by the market price of the shares at certain future milestones does not meet C$1.
Funds will be used to complete the development of an add-on feature that will allow creators to launch their own digital currency powered by the blockchain, the company said.
“Over the past decade, the platforms and tools that allow creators to share content, build an audience and make money have grown to over $100 billion. This has resulted in the multi-billion dollar valuations of centralized platforms like Facebook, TikTok and Youtube,” Victory Square CEO Shafin Diamond Tejani said in a statement.
“We're excited about Creator.co's decentralized vision of building a platform based on shared ownership, giving power back to creators, and extending the options for monetization even further - to their followers,” he added.
Creator.co CEO Vinod Varma told investors that the creator economy and social commerce “is in only in its infancy” and will continue to grow exponentially with the expansion of the metaverse.
“We're excited to work with them and become the first public influencer marketing platform that allows investors to participate in the creator economy like never before,” Varma added.
Victory Square builds, acquires and invests in promising startups, then provides the senior leadership and resources needed for fast-track growth.
Contact Angela at angela@proactiveinvestors.com
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