Sunday, April 27, 2014 3:50:31 PM
As to the valuation on Bhang the best comparison I can make is to MJNA and Dixie. MJNA is now valued at about $200,000,000. I would guess that the majority of that value comes from their Dixie interest. Dixie has barely made it out of Colorado and is mired in lawsuits and infighting. Mentor might be putting $39,000,000 into Bhang but only $9,000,000 goes to the original owners. The remaining $30,000,000 goes into the business of which Mentor will own 60%. When you think on it, 60% of the $30,000,000 goes out of one Mentor pocket into another Mentor pocket. The true cost to Mentor is much less than the $39,000,000. If you don't believe in the future of the MJ business, you will consider this an expensive deal. If you do believe, it sounds like an excellent deal. As an added plus there are no lawsuits and no infighting.
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