Bhang Owners Have Not Returned $1.5 Million Paid to Them and Stock
in Lieu of Repayment Would Make Mentor Shareholders Whole, According to
SAN DIEGO--(BUSINESS WIRE)--
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
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
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
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
Source: Mentor Capital, Inc.