Mentor Capital Negotiates to Fund Eighteen Leading Cannabis Brands
Nov 13, 2013 10:43:00 (ET)
SAN DIEGO--(BUSINESS WIRE)--November 13, 2013--
Mentor Capital, Inc. (Pink Sheets:MNTR) reports that it has entered into negotiations to fund eighteen legal cannabis related companies. These companies are variously described in writing by their fellow CEO's as the "cream of the crop," "great, " "the best... I have ever seen" and that "their Cannabis Cup awards speak for themselves." While not every one of the CEO's in negotiations will finally join Mentor Capital, the offers are generally what management has already verbally agreed to.
Mentor Capital is approaching the sector with a medical focus as company CEO, Chester Billingsley explains, "Coming from leading edge cancer investments, each week I brace to hear a new voice asking how to bear their approaching cancer death. Cannabis helps them keep up their strength to fight back by increasing appetite, reducing nausea, calming anxiety and muting pain. I'm very conservative and wasn't for this before, but I am now."
At the National Marijuana Business Conference, on November 6, 2013, the legal cannabis market was reported to be currently at $1.4 Billion and expected to grow 64% next year. The black market is $50 Billion, implying that a potential 3,500% increase in legal revenues across the cannabis sector could be possible. This anticipated rapid market growth is suspected to be responsible for public valuations at extremely high multiples to revenue, sometimes ranging to 30 to 70 times annual sales.
In this optimistic market environment, the Leading Cannabis Brand portfolio members look to split the public funding proceeds that come into Mentor Capital pro rata to Mentor's 10% to 60% ownership stake in their respective companies. Mentor Capital shareholders hold $140 Million in freely tradable warrants to exercise and buy shares that are immediately freely trading. If the public market value of the Cannabis assets is greater than the private market value, the step-up may attract warrant holders to exercise and buy shares at the calculated discount. The combined offered basis of all the assets Mentor is reserving future proceeds for slightly oversubscribes the $140 Million that could become available.
Mentor Capital, Inc., by acquisition or investment, seeks to fund $140 Million in Leading Cannabis Brands. Mentor emphasizes backing the market leaders in each segment of the cannabis industry with an extreme adherence to legal compliance. A recent letter to shareholders with additional detail may be found at: www.MentorCapital.com.
Forward Looking Statements, Safe Harbor and Risk Descriptions are Incorporated by Reference from the MNTR Company Web Site above.
CONTACT: Mentor Capital, Inc.
Chester Billingsley, CEO
(760) 788-4700
