Cannabis
Stock News: Mentor Capital (OTCQB: $MNTR) Book Value up 66% to $5.6M Today, in
2016 10-K
G Farma, GWPH, Bhang and Cash Total
$5.4M for Marijuana and Cannabis M&A Leader
SAN DIEGO - March 29, 2017
(Investorideas.com Newswire) Mentor Capital, Inc. (OTCQB: MNTR) announced that
it has filed its annual 10-K filing for the year ended December 31, 2016 with
the SEC.
The Company reports that for the year
ended December 31, 2016, Mentor had revenues of $2,761,245 and gross profit of
$976,085 with a resulting net loss of ($858,113) or (4.8 cents) per share. This
is an improvement in revenue from the year ended December 31, 2015, revenues of
$2,561,758. For the year ended December 31, 2015, Mentor experienced a net loss
of ($799,868) or (5.1 cents) per share.
The Mentor Capital, Inc. parent
company has no non-affiliate debt, and raised $1,542,961 from approximately 20
shareholders during the year ended December 31, 2016, under the authority of an
11 USC 1145 order and $523,520 from warrant redemption fees at $0.10 per
warrant from designees redeeming unexercised warrants that have been called but
were not exercised timely. The Company invested $25,000 into cannabis related
companies during the year and the Company maintained a cash balance of
$1,311,338 at December 31, 2016, compared to $73,679 at December 31, 2015. The
Company closed the year ended December 31, 2016, with a book value of
$4,051,629, up from $3,374,882 at the end of 2015.
Mentor Capital, Inc. had 7,575
shareholders reported as of December 31, 2016, with 20,980,510 shares issued.
There were 8,206,390 Series D warrants outstanding at the December 31, 2016,
year-end at a strike price of $1.60 per share, and 689,159 Series H warrants
are held by an investment bank at a $7.00 per share strike price. During 2016,
Mentor sold 222,223 shares of unregistered share for $100,000. No new equity
was granted to directors, insiders, consultants or investor relations firms in
2016. A long-term 300,000 share repurchase plan was authorized in 2014 and at
December 31, 2016, a total of 44,748 shares have been repurchased under the
long-term plan. The Company's shares finished the year at a closing price of
$1.06 per share representing a market capitalization of $22,239,341 compared to
a 2015 year ending closing price of $0.27 per share and a corresponding market
capitalization of $4,388,834. As of March 27, 2017, the closing price of the
Company's shares was $2.44 which results in a corresponding market
capitalization of $54,690,268.
The Company is managed by CEO Chet
Billingsley (64), who founded Mentor Capital first as an acquisition
partnership in 1985. He was qualified as a Registered Investment Advisor and
received his undergraduate education at West Point before receiving a Master's
Degree in Applied Physics at Harvard University. His early career was at
General Electric. CFO Lori Stansfield, CPA (57), was most recently Director of
Audit Services for a regional CPA firm. She graduated Magna cum Laude in
accounting and received a Master's Degree from the University of Colorado. Ms.
Stansfield is certified as a public accountant in both Colorado and California.
The four non-officer directors are independent and each has been or is a
business owner and major shareholder. Altogether, the directors and officers
hold a 29.53% interest in Mentor Capital with Mr. Billingsley's interest
reported at 22.90%.
On December 29, 2016, Mentor obtained
a judgment in the amount of $1,921,534 against Bhang Corporation and its
predecessor in interest, Bhang Chocolate Company, Inc., in the United States
District Court for the Northern District of California related to an action
filed by Mentor on August 11, 2014, seeking rescission of the February 28,
2014, co-operative funding agreement with Bhang Corporation ("Bhang
Agreement") and return of the $1,500,000 paid by the Company to Bhang. The
judgment accrues interest at the rate of 10% from December 29, 2016, until such
time as the judgment is satisfied. Mentor intends to enforce this judgment. As
part of the judgment Bhang owners, Scott Van Rixel and Richard Sellers, who
together purchased 117,000 shares pursuant to the Bhang Agreement have the
option to return all or part of those shares in exchange for payment of the
original purchase price of $1.95 per share plus a pro-rata amount of $58,568 in
interest for such returned shares. Mentor will account for the return of the
shares as a capital transaction if and when the shares are remitted back to the
Company. See Note 4 to consolidated financial statements.
From January 1, 2017, through March
22, 2017, the Company raised $1,765,733 from the exercise of warrants into
Common Stock and $56,490 from warrant redemption fees at $0.10 per warrant from
designees redeeming unexercised warrants that have been called but were not
exercised timely.
In February 2017, the management of
GVS stated that they have another entity from which they plan to operate their
Puerto Rico operations and they intend to register shares from that entity
rather than register the GVS shares they agreed to per the Company's consulting
agreement with GVS. The Company holds 500,000 shares in GVS, originally valued
at $50,000, which have been fully impaired at December 31, 2016.
In March 2017, the Company invested
$1,049,086 in GW Pharmaceuticals PLC Common Stock.
On March 22, 2017, the Company
entered into a Notes Purchase Agreement, effective March 17, 2017, with G
Farmalabs Limited ("G Farma") under which the Company loaned G Farma
an aggregate principal amount of $500,000 under two secured convertible
promissory notes. In addition, G Farma exchanged an interest in certain assets
and certain rights to register its stock publicly in exchange for 222,223
restricted shares of the Company's Common Stock in a private placement at a
price of $2.25 per share for an aggregate purchase price of $500,002. See Note
26 in the consolidated financial statements.
The 10-K includes December 31, 2016,
audited financials and can be referenced through the SEC's EDGAR system at: https://www.sec.gov/edgar/searchedgar/companysearch.html
Inputting the company name, Mentor
Capital, Inc. or the Company's CIK code which is 0001599117, will bring up the
report. The 10-K can also be viewed at the Company's web site at the Investor's
Corner section under the Disclosures tab.
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.
This press release is neither an
offer to sell, nor a solicitation of offers to purchase, securities.
Forward-Looking Statements: This
press release contains forward-looking statements within the meaning of the
federal securities laws, including statements concerning financial projections,
financing activities, corporate combinations, product development activities
and sales and licensing activities. Such forward-looking statements are not
guarantees of future results or performance, are sometimes identified by words
of condition such as "should," "could,"
"expects," "may," "intends," "seeks,"
"looks," "moves," or "plans" and are subject to a
number of risks and uncertainties, known and unknown, that could cause actual
results to differ materially from those intended or anticipated. Such risks
include, without limitation: nonperformance of investments, partner and
portfolio difficulties, potential delays in marketing and sales, problems
securing the necessary financing to continue operations, problems involving
continued illegality of cannabis products, potential of competitive products,
services, and technologies, difficulties experienced in product development, in
recruiting knowledgeable personnel and in protecting intellectual property.
Further information concerning these and other risks is included in the
Company's Form 10 filing which, along with other very important information
about the Company, can be found here: http://mentorcapital.com/disclosures/
The Company undertakes no obligation
to update or revise such forward-looking statements to reflect new information,
events or circumstances occurring after the date of this press release.
Contacts
Mentor Capital, Inc.
Chet Billingsley, CEO
(760) 788-4700
Chet Billingsley, CEO
(760) 788-4700
Watch the 420
Cannabis Investor video
More Info:
This news is published on the
Investorideas.com Newswire - a global digital news source for investors and
business leaders
Disclaimer/Disclosure: Investorideas.com is a digital publisher of third party sourced news,
articles and equity research as well as creates original content, including
video, interviews and articles. Original content created by investorideas is
protected by copyright laws other than syndication rights. Our site does not
make recommendations for purchases or sale of stocks, services or products.
Nothing on our sites should be construed as an offer or solicitation to buy or
sell products or securities. All investment involves risk and possible loss of
investment. This site is currently compensated for news publication and
distribution, social media and marketing, content creation and more. Contact
each company directly regarding content and press release questions. Disclosure
is posted for each compensated news release, content published /created if
required but otherwise the news was not compensated for and was published for
the sole interest of our readers and followers. More disclaimer info: http://www.investorideas.com/About/Disclaimer.asp
Additional info
regarding BC Residents and global Investors: Effective September 15 2008 - all
BC investors should review all OTC and Pink sheet listed companies for
adherence in new disclosure filings and filing appropriate documents with
Sedar. Read for more info: http://www.bcsc.bc.ca/release.aspx?id=6894.
Global investors must adhere to regulations of each country.
