Legion M

[Paul Legion M]

Response to Handyman,

I’m not sure where all these claims and accusations are coming from, but I’d like to try to address them. We are pioneering a new space with a first of its kind business model so it is understandable that questions and inquiries come up.

I remember you had similar concerns about the business back when you first got involved and we have responded back then as well. Everyone is entitled to his or her own opinions and we know that Legion M’s unique model may not be a great fit for everyone. The tone of your latest inquiry/attack is pretty aggressive though, which causes us to wonder if you might have some ulterior motivation or to wonder what happened.

Regardless, I’d like to give you the benefit of the doubt and try to patiently address your concerns. I don’t expect that my response is going to change your mind, but as you make some pretty damning charges against us, I think it’s worth responding to.

Let me start with your statement that Legion M is a scam. This is a strong statement to make and something we obviously don’t take lightly. There are a lot of scams out on the Internet but I can assure you Legion M is not one of them. The founders and the small team at Legion M have a lot more at stake than a $100 investment. We are betting our own money, our careers, and our reputations on making this work. And we know the odds are stacked against us and we warn each new investor of this, but we are excited about the potential for Legion M and our goals are genuine and sincere.

What we are attempting isn’t going to be easy and it is not going to happen overnight, but if we can achieve what we aim to do, we are convinced that we can create an influential and valuable entertainment company. Success for us isn’t raising capital. Success for the Legion M team is creating a profoundly important and valuable new company in the space and providing our shareholders with emotional and financial ROI. You can bet against us if you wish, but its not going to stop us from pursuing something that we wholeheartedly believe in and are working around the clock to make happen.

For now, let me try to address each of your accusations.

<<They make NO MONEY!.>>

We have generated some revenues but like most startups at our stage, we are not profitable? We don’t pretend to be nor had we intended to be profitable at this early stage. We are building and growing and profitability is not the primary objective in this early phase. To be clear as I don’t want to be misquoted on this, we do care about profitability and we believe that we can build a profitable company over time, but the phase we are in today is all about growing the community, establishing some early projects and demonstrating our impact. Tesla wasn’t trying to be profitable on the first car they sold.
<<They have no business plan.>>

We do have a business model. In fact, many credible people in the industry have celebrated our unique business model. Stan Lee said it “Legion M was such a good idea, he wishes he had thought of it”. Dean Devlin calls Legion M’s model the “Future of Hollywood”, a recent reporter went on record saying "This exciting company is a bridge between the fans and the creators and, I truly believe, has the potential to one day even overtake Disney as Hollywood's most influential entertainment force."

We regularly share information and details on the business model with our shareholders, including a recent 1 hour presentation title “Method to the Madness” where we walked our investors through our plans, shared some data on the demonstrated impact we have had, and our phased approach. If you have not seen this presentation, I encourage you to watch it (https://legionm.com/shareholder-updates/2018/7/10/legion-m-strategy-plan-shindig-method-to-the-madness) or maybe read our secret master plan (https://legionm.com/shareholder-updates/legion-ms-top-secret-plan). Ultimately, you may not believe in our business model, which is fine. We don’t expect everyone to get it. When we started MobiTV, nearly 18 years ago, many people very smart people did not believe that anyone would ever watch TV on their mobile phones. Jeff and I are very accustomed to naysayers and we have a saying that a healthy debate helps us polish the stones and that downright naysayrs only strengthen our resolve and our commitment to prove them wrong. Time will tell if it we can prove you wrong, but we are more convinced now than ever that we can create a very successful and valuable company.

<<They have a small office in LA Ca.
They have no studio.
NO REAL ESTATE folks. >>

Yes, we have a very small, shared office in LA and we are otherwise virtual. I hardly think you’re revealing some dark secret here. We are scrappy, we don’t feel it is necessary to incur the added expense of rent or an office when we can all work remotely. In fact, for the Bay Area, we have free use of MobiTV’s office whenever we need it. We are a small team and we don’t need a big studio lot, that part of Hollywood is old school. We don’t need real estate to be successful and it most certainly isn’t an indication of whether we exist or not. We’ve also been very clear about this in our communication, and most investors see this as evidence that we are spending the money wisely.

<<They offer no address to visit or send hard mail to because they're hiding.
They operate out of an electronic, post office box.>>

Your claim that we are hiding couldn’t be more absurd. Anyone in or outside the Legion can contact us and reach us in a wide variety of ways. We are available night and day and highly responsive. LOL, I’m just noting that I’m responding to you on the weekend on the same day you inquired.

Our Legion knows that they can meet us, get us on the phone, any of those things. We do frequent updates (written and live) on the business to keep everyone informed and to answer any questions, concerns, etc. We just came from SDCC where we invited Legion M members to our lounge to meet face to face. It was awesome! And our community knows how to reach us, how to meet with us, how to engage. I would be shocked if beyond your complaint, we have a lot of investors that think we’re hiding away somewhere and not reachable. I’m not sure why you feel differently.

<<You are DONATING your money to them, not investing it in them.>>

Nobody is donating money to Legion M. If we wanted donations, it would have been much easier and less expensive for us to set up a kickstarter or gofundme page and avoid all the complications and expense of properly filing with the SEC and setting up real equity accounts on behalf of all our investors.

Every investor is getting real shares of the company and a Carta account to keep them in. You have one yourself. And you invested at $7 per share and the most recent valuation of the shares in the last round was $8.32 per share. You can argue that you don’t think the shares are worth that, but we just sold out a round at that price which many would argue is evidence that they were fairly priced and because it was oversubscribed, some might say the price should have been higher. At this point, it doesn’t matter. We’d just be arguing again over whether Legion M is a longterm viable business model and we have already established that we don’t agree on that.

<<Don't ask about auditioning. They have no studio. >>

We have had a few casting calls and there have been some Legion M member projects posting their casting calls to the Legion social and forums, but casting and auditioning hasn’t been something we have promised to investors. I’m sorry if you invested in Legion M with the expectation that we would be hiring or casting you in a role.

With that said, it is our goal In the future to provide the Legion with a database and ability to connect with one another and to post any staffing or casting opportunities for members to get involved. In the meantime, we’re very careful not promise our investors that we’ll be hiring them in one of our projects. Again, that just wouldn’t be practical to pull off.

<<Don't ask about sending in manuscripts. They have no editorial staff. >>

Again, just to be clear, investing in Legion M does not mean that we back your manuscript. I’m not sure where you got that impression. We have had incredible interest in submitting projects to us, which is great, but if we made an open call, we would be overwhelmed with the material and we don’t have an army of readers and editors to review. Therefore, we have been very clear that we’re not taking new submissions at this very moment, but we do encourage people to go to our site, there is a place where you can sign up to get an alert whenever we do (www.thelegionm.com/submissions). They can also submit your ideas through our Pitch Elevator Project (https://legionm.com/shareholder-updates/2017/10/6/pitch-elevator-update) when we open our next season (we are still finishing season 1). Lastly, Legion M is an interactive community and as such we encourage our members and investors to connect with one another via our Forums pages and social media to share projects, and potentially cooperate together.

Once again, we wouldn’t want any investor investing their money with the expectation that we will be buying their manuscript. That’s not practical or a very smart way to run the company.

<<Don't ask about the value of your certificate. It's less valuable than the paper you wipe your a** with. >>

Once again, not true. People in the Legion know the value of the shares. According to our records, you invested $100 in our first round at $7 per share and we just closed the most recent round at $8.32 per share. With those facts in hand, you have already seen a gain in the value of your shares, yet, you’re trying to convince yourself and others that they have no value. Do you do this for all your investments? I can’t imagine that’s a good investment strategy.

I don’t completely understand where you’re coming from, but if you really do think the shares have no value, you should sell them. We had more demand for the shares than we had supply for at $8.32 so some might argue that the shares were underpriced at $8.32 per share.

I don’t know if any of this helps. I’m guessing not, but I don’t appreciate our heartfelt and genuine efforts to do something new and innovative being called a scam.