(2019-08-07) Meow Wolf Putting The Bite On Investors Who Anted Up When It Needed Help Critics Say
Meow Wolf putting the bite on investors who anted up when it needed help, critics say. Nick Perry was among the 621 people who answered the call in 2017 when the Santa Fe, N.M.-based art collective took to Wefunder, a crowdfunding service. The up-and-coming art collective, now an expanding enterprise, raised $1.3 million in a little under 48 hours.
Since then, the company has raised millions more, including $158 million from 87 investors
He was one of the first 100 investors who was able to buy 20 shares for $512. His brother, who pitched in later, paid $1,000 for the same amount.
Perry and his brother, a sculptor, were also among the investors who got an Aug. 1 letter from Meow Wolf CEO Vince Kadlubek saying the company was exercising its right to redeem the shares at $83.70 per share.
Nick Tommarello, Wefunder’s co-founder and CEO, said in an email Wednesday that the contracts investors signed with Meow Wolf allows the company to repurchase the shares. He said the clause is intended as an “escape hatch” in case a venture capitalist refuses to invest in a company because it used crowdfunding.
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