Mentor Capital Adds 1,000 Shareholders per Month, Eyes OTCQX
Debt-free Cannabis M&A Leader Targets $2 Million in New Cash
SAN DIEGO--(BUSINESS WIRE)-- Mentor Capital, Inc. (OTCQB: MNTR) announced it has doubled its base of active shareholders who have shares in a brokerage account in the last quarter rising 100% to 6,000 from 3,000 three months earlier. “Each quarter I personally welcome every new fellow-owner reported by brokers with a signed note of appreciation, so this was a particularly happy recent task,” says Mentor Capital, Inc. CEO, Chet Billingsley.
“The additional free cash flow from our growing approximately $2.0 million December 28, 2016 judgment against Bhang Corporation, for failing to return our 2014 $1.5 Million investment after they rejected and breached the contract, seems of particular positive interest to shareholders. Ironically, the multi-million dollar success of Bhang Corporation in the medical marijuana, recreational cannabis and vape markets further improves the certainty of collection on the judgment, with or without the help of US Marshall servicing in each state where Bhang does business.” Mentor notes that it has already affirmatively discussed a $1.9 million tentative offer from a third party introduced by Bhang owners but that was not timely reserved with a $100,000 non-refundable deposit.
The company reports that in part because of this growth and cash, Mentor Capital, Inc. is looking to apply to join the 399 companies in the OTCQX, the top tier of the 10,000 companies organized by OTCMarkets. All aspects of qualification are arranged, significantly including net tangible asset levels, bid price, market makers, number of shareholders, market cap, audited financials, full SEC reporting, independent directors and an audit committee. Following the next board of directors meeting, it is anticipated that the formal paperwork will be submitted to OTCMarkets for their consideration.
In parallel with the hoped for uplisting, the company reports it looks to further simplify its already straightforward capital structure. Series B warrant holders who have not already done so, should send in their paper certificates to the company to receive an as of yet unscheduled redemption payment from potential cash flows. Series B warrants in brokerage accounts will automatically receive 10 cents each without any shareholder action needed. All shareholders are reminded that they may ask to be put on the list at any time to request to be a designee to together redeem in total up to 1% per tranche of the irregularly available Series D Warrants. These are under the Section 1145 partial exercise and exemption and are at a discount to the market. The warrants often come from the estates of former shareholders or others that have not exercised timely, who then later receive 10 cents for their warrants. The five Bhang affiliates have the option during 2017 under the rescission order to return their shares purchased for $1.95 plus interest to the judgment date, or they may keep and sell the shares if that becomes more lucrative. If 100% of such shares are returned 89,456 active Series B warrants will redound back to the CEO who contributed them and be exercised. The three longstanding non-affiliate Series H warrant holders have been contacted to discuss how to fairly monetize their cashless warrants. The CEO’s 10b5-1 Plan that allows level stock sales by a third party at about 1% of volume continues. Mr. Billingsley notes, “I removed my shares from the voluntary multi-year non-selling escrow, which itself followed about ten years of no stock sales on my part. This was triggered August 2016 in order to afford my two son’s out of state overlapping university tuition. Since the start of this trickle of sales, with repeating weekly notice to the SEC, our share price has increased 400%.”
About Mentor Capital: The Company seeks to come alongside and assist private medical marijuana and cannabis companies and their founders in meeting their liquidity and financial objectives, to add protection for investors and to help incubate private cannabis companies. Additional important information for investors is presented at: www.MentorCapital.com .
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