What a success this has been! Three years ago, the Beagles launched their new money making venture to the world with a fanfare. LB Compare was set to be the definitive comparison site for legal services, amongst other things. They must have expected their forum user base to feed clients to advertisers, nothing wrong with that in principle, but where was the money in that? The idea was to get law firms to pay for a featured advert on their website, which would also allow them to publish fixed fee services. It was never clear whether there would also be some referring going on in the background. While law firms and lawyers are not allowed to tout for business themselves, there is nothing wrong with someone sending a forum poster a PM recommending a lawyer or firm. In fact, this had been happening all along, albeit unofficially.
Whatever the arrangement, it wasn’t the resounding success they expected and the operation was later rebranded as “Just Beagle”. Clearly this didn’t work any better, as can be seen from the attached correspondence. The documents speak for themselves, and their shares appear to have less value than a roll of toilet paper, if the attached letters are anything to go by.
One letter starts with the following:
I am sorry to have to write to you in this manner but unfortunately the company is in a situation whereby this month will be the last that we can pay wages due to our investment funding being exhausted.
We have a further letter saying:
In regard to your question about the company buying back your shares, since we have no money to pay salaries we do not have any to purchase shares. In any event that would not be the process, as provided for in the Articles of Association which requires you to offer the shares to existing shareholders to purchase. Given our trading position it would be unlikely that there is any current value to them.
Says it all really! One has to wonder where all the investor money went.