Feb 03, 2017
OTC Disclosure & News Service
Mentor Capital, Inc. (OTCQB: MNTR) announced it has doubled its base ofactive shareholders who have shares in a brokerage account in the lastquarter rising 100% to 6,000 from 3,000 three months earlier. “Eachquarter I personally welcome every new fellow-owner reported by brokerswith a signed note of appreciation, so this was a particularly happyrecent task,” says Mentor Capital, Inc. CEO, Chet Billingsley.
“The additional free cash flow from our growing approximately $2.0million December 28, 2016 judgment against Bhang Corporation, forfailing to return our 2014 $1.5 Million investment after they rejectedand breached the contract, seems of particular positive interest toshareholders. Ironically, the multi-million dollar success of BhangCorporation in the medical marijuana, recreational cannabis and vapemarkets further improves the certainty of collection on the judgment,with or without the help of US Marshall servicing in each state whereBhang does business.” Mentor notes that it has already affirmativelydiscussed a $1.9 million tentative offer from a third party introducedby Bhang owners but that was not timely reserved with a $100,000non-refundable deposit.
The company reports that in part because of this growth and cash, MentorCapital, Inc. is looking to apply to join the 399 companies in theOTCQX, the top tier of the 10,000 companies organized by OTCMarkets. Allaspects of qualification are arranged, significantly including nettangible asset levels, bid price, market makers, number of shareholders,market cap, audited financials, full SEC reporting, independentdirectors and an audit committee. Following the next board of directorsmeeting, it is anticipated that the formal paperwork will be submittedto OTCMarkets for their consideration.
In parallel with the hoped for uplisting, the company reports it looksto further simplify its already straightforward capital structure.Series B warrant holders who have not already done so, should send intheir paper certificates to the company to receive an as of yetunscheduled redemption payment from potential cash flows. Series Bwarrants in brokerage accounts will automatically receive 10 cents eachwithout any shareholder action needed. All shareholders are remindedthat they may ask to be put on the list at any time to request to be adesignee to together redeem in total up to 1% per tranche of theirregularly available Series D Warrants. These are under the Section1145 partial exercise and exemption and are at a discount to the market.The warrants often come from the estates of former shareholders orothers that have not exercised timely, who then later receive 10 centsfor their warrants. The five Bhang affiliates have the option during2017 under the rescission order to return their shares purchased for$1.95 plus interest to the judgment date, or they may keep and sell theshares if that becomes more lucrative. If 100% of such shares arereturned 89,456 active Series B warrants will redound back to the CEOwho contributed them and be exercised. The three longstandingnon-affiliate Series H warrant holders have been contacted to discusshow to fairly monetize their cashless warrants. The CEO’s 10b5-1 Planthat allows level stock sales by a third party at about 1% of volumecontinues. Mr. Billingsley notes, “I removed my shares from thevoluntary multi-year non-selling escrow, which itself followed about tenyears of no stock sales on my part. This was triggered August 2016 inorder to afford my two son’s out of state overlapping universitytuition. Since the start of this trickle of sales, with repeating weeklynotice to the SEC, our share price has increased 400%.”
About Mentor Capital: The Company seeks to come alongside andassist private medical marijuana and cannabis companies and theirfounders in meeting their liquidity and financial objectives, to addprotection for investors and to help incubate private cannabiscompanies. Additional important information for investors is presentedat: www.MentorCapital.com.
This press release is neither an offer to sell, nor a solicitation ofoffers to purchase, securities.
Forward Looking Statements: This press release containsforward-looking statements within the meaning of the federal securitieslaws, including statements concerning financial projections, financingactivities, corporate combinations, product development activities andsales and licensing activities. Such forward-looking statementsare not guarantees of future results or performance, are sometimesidentified by words of condition such as “should,” “could,” “expects,”“may,” “intends,” “seeks,” “looks,” “moves,” or “plans” and are subjectto a number of risks and uncertainties, known and unknown, that couldcause actual results to differ materially from those intended oranticipated. Such risks include, without limitation: nonperformance ofinvestments, partner and portfolio difficulties, potential delays inmarketing and sales, problems securing the necessary financing tocontinue operations, problems involving continued illegality of cannabisproducts, potential of competitive products, services, and technologies,difficulties experienced in product development, in recruitingknowledgeable personnel, in collecting judgments and in protectingintellectual property. Further information concerning these and otherrisks is included in the Company’s Form 10-K and 10-Q filings which,along with other very important information about the Company, can befound here:
The Company undertakes no obligation to update or revise suchforward-looking statements to reflect new information, events orcircumstances occurring after the date of this press release.
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