Last month, Evangelical Dark Web reported on Angel Studios using Regulation A of the Securities Act of 1933 to crowdfund by selling equity. The maximum that Angel Studios was able to raise was $20 million, and they maxed out on Monday with 22,845 people investing (or committing to invest), in what was a shady investment to put it mildly.
Angel Studios is selling its stock for $30.14 per share and selling an insignificant amount of its total authorized shares. The $20 million round of funding comes with an unknown valuation and no financial statements for potential investors to discern the viability of the investment. Although investors in equity crowdfunding campaigns are entitled to preferred distributions until they recuperate 1.2x their investment, Angel Studios makes it clear that their investment will not pay dividends and is only a store of value, the value being what they tell you its worth.
Angel Studios is selling high while they can milk the success of Sound of Freedom despite underperforming at the box office since with few future prospects that can match its success. Moreover, the company aims to triple its subscriber base to its streaming platform in one year, a laughable proposition.
Angel Studios was the 8th largest film distributor in the United States in 2023. This success has elevated their status but it has not been sustained through 2024. Earlier this year, they distributed Cabrini, a feminist film that lost at least $30 million at the box office. Sound of Hope: The Story of Possum Trot was made for a reasonable $8.5 million but earned only $11.5 million at the box office. Sight earned $6 million at the box office off an unknown budget. The Shift earned $12.2 million off a $6.4 million budget The documentary After Death grossed $11.7 million, likely being the most profitable project since Sound of Freedom distributed by Angel Studios.
There’s a sucker born every minute and over 20,000 of them pledge to invest in Angel Studios.
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