Mentor Capital 2015 Revenues Gain 19% to $2.6 Million in 10-K
Marijuana and Cannabis M&A Leader Increases Assets, Book Value, Revenue and Gross Profit
SAN DIEGO--(BUSINESS WIRE)-- Mentor Capital, Inc. (OTCQB: MNTR) announced that it has filed its annual 10-K filing for the year ended December 31, 2015 with the SEC.
The Company reports that for the year ended December 31, 2015 Mentor had revenues of $2,561,758 and a gross profit of $996,347 with, after goodwill impairment of ($466,765), a resulting net loss of ($799,868) or (5.1 cents) per share. This is an improvement in revenue and gross profit from the year ended December 31, 2014 revenues and gross profit of $2,144,336 and $773,161, respectively. For the year ended December 31, 2014 Mentor experienced a net loss of ($472,923) or (4.2 cents) per share.
The Mentor Capital, Inc. parent company continues to have no non-affiliate debt, and raised $332,249 from approximately 35 shareholders during the year ended December 31, 2015 under the authority of an 11 USC 1145 order. $118,859 was invested into cannabis related companies during 2015 and Company assets totaled $4,275,061 at 2015 year-end, an increase from 2014 year-end assets of $3,994,390. The Company maintained a cash balance of $73,679 at December 31, 2015 compared to $326,228 at December 31, 2014. The Company closed the year-ended December 31, 2015 with a book value of $3,374,882 up from $3,106,902 at the end of 2014.
The Mentor Capital, Inc. transfer agent reports 4,347 shareholders as of December 31, 2015, with 16,254,941 shares issued. There are 12,709,736 Series D warrants outstanding at the December 31, 2015 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 2015, no unordered or unregistered share offerings were made and no equity was granted to directors, insiders, consultants or investor relations firms. A long-term 300,000 share repurchase plan was authorized in 2014 and during the year ended December 31, 2015, 23,300 Mentor shares were repurchased out of the open market resulting in a total of 44,748 shares repurchased under the long-term plan. The Company’s shares finished the year at a closing price of $0.27 per share representing a market capitalization of $4,388,834 compared to a 2014 year ending closing price of $0.60 per share and a corresponding market capitalization of $8,689,929. As of March 24, 2016 the closing price of the Company’s shares was $0.68 which calculates to a current market capitalization of $11,053,360.
The Company is managed by CEO, Chet Billingsley (63), who founded Mentor Capital first as an acquisition partnership in 1985. He was qualified as a Registered Financial Advisor and received his undergraduate education at West Point before receiving a Master’s Degree in Applied Physics at Harvard University. CFO, Lori Stansfield, CPA (56), 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 31.55% interest in Mentor Capital. Mr. Billingsley’s interest is reported at 24.66% and is being moved from a purely voluntary escrow to a 10b5-1 Plan under third party control to more formally preclude any directed share sales by him when non-public information is known.
On March 11, 2014, Mentor entered into an agreement with Bhang Corporation, and paid Bhang $1,500,000 between then and May 9, 2014. On June 24, 2014, Bhang repudiated the contract, giving Mentor nothing, but refused to return the $1,500,000 paid to Bhang and its owners. On August 11, 2014, Mentor filed a complaint in Federal District Court for the Northern District of California for rescission to seek a return of the $1,500,000. The court has ordered the parties to arbitration. As directed by the court, arbitration has been initiated with the American Arbitration Association and a panel of arbitrators has been appointed. Arbitration is now scheduled to occur in early May 2016. Until the matter is resolved, Mentor considers the $1,500,000 invested in Bhang as an investment for which it must make periodic disclosures.
The 10-K includes December 31, 2015 audited financials and can be referenced through the SEC’s EDGAR system at:
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:
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:
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.
Mentor Capital, Inc.
Chet Billingsley, CEO
Source: Mentor Capital, Inc.
Released March 28, 2016