Mentor Capital Awarded $1.5 Million from Bhang Corporation
The Agreement with Bhang Rescinded by Arbitration Panel Due to Bhang’s Breach
SAN DIEGO--(BUSINESS WIRE)-- Mentor Capital, Inc. (OTCQB: MNTR) announced that it has been awarded $1,500,000 plus approximately $375,000 in interest from Bhang Corporation. The Arbitration Panel concluded in the award that, “Bhang breached the Agreement by failing to deliver the shares” required from Bhang under the contract. Mentor’s requested contract rescission for the return of its $1,500,000 investment, made in 2014, was affirmed, and Bhang’s request for damages was entirely denied.
The Panel also clarified and found that, “Mentor Stock was freely traded," and “Bhang was not fraudulently induced to enter into the Agreement.” Scott Van Rixell and Richard Sellers must return the 117,000 shares they purchased before they may be paid back the purchase price of those shares as part of putting the parties back “in the position they were before the execution of the Agreement.”
Mentor Capital, Inc. CEO, Chet Billingsley, is pleased that this regrettable chapter in the cannabis sector is being brought to a close. “We didn’t ask for damages and I am pleased our funds seemed to have boosted Bhang’s growth. We put up our funding over sixty-days and, hopefully, the repayment by Bhang will also go smoothly. Mentor plans to redeploy those repaid funds with other established cannabis companies that are interested in moving forward with Mentor.”
Mentor Capital clarifies that other than for the payment of the award to Mentor, neither Bhang nor Mentor will have any affiliation with the other in any way nor own any part of each other. Mentor will immediately remove its previous press releases, accompanying logos and similar older references to Bhang as part of the rescission order to ensure there is no suggestion of any continuing interest by Mentor.
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, 760-788-4700
Source: Mentor Capital, Inc.
Released July 19, 2016