Good news for Ideas Britain Shareholders? Bad news for Crowdcube.

We have removed our previous post on Ideas Britain as legal representation from the company lawyer, Jonathan Coad of Keystone Law, accused it of being riddled with factual errors. What is the legal definition of 'riddled'? 

We wonder, if we had had the post littered with errors, would that have been ok?

So anyway we apologise for the assumptions we made which we thought were based on facts. This time we will just give you the facts and you can make up your own minds. 

Ideas Britain raised £270k on Crowdcube.

It projected in its Crowdcube campaign, profits for YE Dec 16 of £1.167m

Filed accounts at CH show losses for YE Dec 16 of £155,000

The difference between these two is over £1.3m.

Crowdcube projections show profits for YE Dec2017 of over £3m.

We have no figures for YE Dec 17. 

IB was set up with £400k of equity funding from Manchester City Council and The North West Fund. The shares owned by these two were recently transferred - they no longer own any shares in IB. We have asked both bodies to give us details of these share transfers to check they sit within the rules set out by the company in its articles. 

We dont know what was paid for these shares and who took them.

Adam Shaw's holding increased at the same time that these shares were transferred.

Other members of the Team also transferred shares at the same time.

The letter from Jonathen Coad of Keystone Law states - 

After the Crowdcube fund raising the Company informed Crowdcube that it would not send out ‘newsletters’ to shareholders but was happy to communicate directly with any shareholder who had an enquiry.  Whilst the Company in any event had no legal obligation to send newsletters, this decision was taken to protect its IP Formats and not to breach the various non-disclosure agreements it enters into.  

This blog only became involved with BI because a shareholder asked us for help trying to find out what had happened to his investment.

Crowdcube is licensed by the FCA. One of the key areas of concern which Crowdcube are well aware of, is the lack of communication between funded companies and their new shareholders. For Crowdcube to be tacitly agreeing with a company that they do not need to issue updates, would seem to be contrary to spirit and possibly the letter of their FCA license. It is certainly a fact that will be of great interest to Crowdcube's thousands of investors.

Adam Shaw states on his Linkedin page that he was the Founder and CEO of HTC Healthcare plc. 

HTC was liquidated on 28 March 2013. 

HTC's last filed accounts for YE March 2006 had losses for the year of £1.142m

HTC as at March 2006 had a deficit of 3.077m

No accounts post March 2006 were filed

The Pine Unit Trust applied for HTC to be closed on  6 November 2008.

Adam Shaw resigned from HTC on 29 October 2008 or 8 days before the Pine Unit Trust appl.

In the letter to us from Jonathan Coad of Keystone Law, states as fact - 

'Adam Shaw was not a Director of HTC Healthcare plc when it was liquidated. Contrary to the implication in the Blog Post he cannot be held responsible for the liquidation of that company.'

HTC was founded by Adam Shaw in May 1999. He was until 29 October 2008 the self proclaimed CEO (see linkedin). The Pine Unit Trust petitioned for HTC to be wound up a few days later.

Adam Shaw signed off the last accounts filed at CH

There is no record of the state of HTCs finances on winding up at CH.

HTC's demise was not mentioned in the Crowdcube pitch.

Pass the sieve.

The End.