What happens if Loan doesn't fund?
There's lots of speculation about the affect of the loan funding or not. The way I see it, MNTR owns 60% of Bhang Chocolate, regardless of the loan. Here is the excerpt from their recent press release:
"The Bhang 60% acquisition contract is closed and is not contingent. The $7.7M still due to Bhang Owners and $30M two to three year infusion into Bhang is expected to be paid in cash, although it could be paid in stock."
So if the loan doesn't come through, I would expect Mentor to issue the Bhang Owners $7.7mil in MNTR stock. At $2.50 per share, that would be about 3.1 million shares on top of the 15 million shares already issued and outstanding. Not a lot of dilution. The remaining $30mil owed to Bhang can be paid out over multiple years. So, if Bhang is a successful company, Mentor will be a successful company. Pretty simple to me.