Mentor Capital Proposes to Accept and Dividend $1.8 Million in Bhang Stock to Shareholders
August 04 2014 - 3:55PM
Business Wire
Bhang Owners Have Not Returned $1.5 Million Paid to Them and
Stock in Lieu of Repayment Would Make Mentor Shareholders Whole,
According to Mentor
Mentor Capital, Inc. (OTC Markets: MNTR) reports that Bhang
Corporation owners, Mr. Scott Van Rixel (67.5%), Mr. Richard
Sellers (30%), and Mr. William Waggoner (7.5%) have received $1.5
million from Mentor Capital without returning value for Mentor’s
shareholders and while repudiating their agreement with Mentor. It
appears that the Bhang owners intend to keep the $1.5 Million, and
give Mentor and its shareholders nothing in return.
Because Mentor and many of Mentor’s shareholders were looking
forward to Bhang Corporation growth, Mentor has made an offer to
resolves its differences with Bhang and its owners including
exploring dividending the Bhang stock Mentor purchased to its
shareholders.
In its most recent offer, Mentor Capital provided a blue print
to Bhang and its owners on August 1, 2014 as to how Bhang shares
might be fairly exchanged for the cash the Bhang owners were paid
and continue to hold. To ensure there is no negative bias to this
win-win proposal, it is proposed that neither Mentor Capital, Inc.
nor its CEO, Chet Billingsley would hold any shares in the
resulting Bhang public entity.
Alternatively, if the Bhang owners wish to find substitute
investors or otherwise pay back the $1.5 Million owners received,
Mentor Capital provided a plan for that repayment which allowed for
a market return to Mentor and its shareholders. Mentor Capital
would then intend to find alternative investments in the cannabis
market for the benefit of its shareholders.
These proposals and the call to integrity and fair treatment
follow two months of ongoing discussions between the lawyers and
owners of Bhang Corporation and Mentor Capital, Inc. During this
time, and earlier, Bhang has steadfastly refused to perform its
contract provisions and has failed to return or even publicly
mention the $1.5 Million in funds the owners have received and
kept. Mentor Capital and its management team have fiduciary
responsibility to pursue a fair and equitable resolution of this
dispute by all legal means. The Bhang proposal that they keep the
$1.5 Million and Mentor’s shareholders receive nothing is
untenable.
The Bhang / Mentor contract is posted at the Mentor Capital home
page and defines payment, alternatives in case of shortfall, the
going public option and the contingent payoff provision. The
contingent payoff provision is at the sole discretion of Mentor,
has been triggered, trumps other provisions, and allows for payment
over about three years with any shortfall made up in stock. Mentor
Capital is in full compliance with this contingent payoff
provision, which, as its name implies, was designed to provide for
the orderly continuation of the contract in the event of changing
circumstances.
Mentor Capital, Inc. has made a $1.5 Million cash investment
into Bhang Corporation and retains significant active contract
rights. The company will continue to list its investment in Bhang
Corporation and Bhang Financial in its portfolio until the
investment is resolved by action of the parties or the courts.
About Mentor Capital: By acquisition or stock purchase,
Mentor Capital, Inc. seeks to invest in leading cannabis companies.
Additional important information for investors and founders seeking
expansion funding 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,” or “intends,” 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 activities, problems
securing the necessary financing to continue operations, problems
encountered in commercializing cannabis products, potential of
competitive products, services, and technologies, difficulties
experienced in product development, difficulties in recruiting
knowledgeable and potential problems in protecting intellectual
property. Further information concerning these and other risks is
included in the Company’s 15c2-11 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 events or circumstances
occurring after the date of this press release.
Mentor Capital, Inc.Chet Billingsley, CEO(760) 788-4700
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