Mentor Capital’s $1.5 Million Award Against Bhang Confirmed by Federal Court and on Path to Judgment
Judgment Language to be Submitted to Court on December 28th
SAN DIEGO--(BUSINESS WIRE)-- Mentor Capital, Inc. (OTCQB: MNTR) announced that the federal District Court for the Northern District of California has confirmed Mentor Capital’s arbitration award against Bhang, rescinding their agreement and awarding Mentor $1.5 million plus 10% interest. The judge further directs the parties to submit a proposed form of judgment by December 28, 2016.
Mentor CEO, Chet Billingsley, explains, “In the spring of 2014 Mentor exchanged $1.5 million cash and additional Mentor stock for 60% of Bhang Corporation, which we learned had less than $1.0 million in sales. However, after Bhang owners Scott Van Rixel, Richard Sellers and William Waggoner divided up and pocketed the cash, Bhang repudiated the contract, keeping the money, but refusing to deliver the Bhang shares. A senior arbitration panel ruled that they breached the contract. The panel granted Mentor’s request to rescind the investment contract which would result in the return of Mentor Capital’s $1.5 million plus interest. The panel gave Bhang nothing by way of damages.”
“After arbitration, it would have been nice if Bhang had paid the net of $1,626,760 due. This seems possible now because we guess that their business has grown to about a $6 million sales rate, strengthening their access to funds to add to our $1.5 million they retained. However, in Mentor’s opinion, Bhang continues to resist making any return of our money. That then pushes us into the judgment and collections phase, where we enlist the help of the courts and authorities to patiently collect the funds already awarded and due to us,” Billingsley concludes.
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-K and 10-Q filings 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 December 22, 2016