Mentor Capital Reports 2014 Revenues of $2.1 Million in 10-K
First 10-K Filing for Marijuana and Cannabis M&A Leader
SAN DIEGO--(BUSINESS WIRE)-- Mentor Capital, Inc. (OTCQB: MNTR) announced that it has filed its initial annual 10-K filing for the fiscal year ending December 31, 2014 with the SEC. Mentor CEO, Chet Billingsley, observes, “We voluntarily took this step approximately a year earlier than securities law would require because in the uncertain medical marijuana and cannabis sector, detailed and reliable disclosure is critical, especially to institutional investors.”
The Company reports that for the 2014 fiscal year Mentor had revenues of $2,149,726 and a gross profit of $773,161 with a resulting net loss of ($472,922) or (4.2 cents) per share. This is improved from 2013 revenues of $32,000 and a corresponding loss of (4.5 cents) per share.
The Mentor Capital, Inc. parent company has no non-affiliate debt, and raised $3,426,243 from approximately 300 shareholders during 2014 under the authority of an 11 USC 1145 order. $1,772,697 was invested into cannabis related companies during that twelve month period and the Company maintained an increased cash balance of $326,228 at the close of 2014 compared to $40,184 at the end of 2013. The Company closed 2014 with a book value of $3,379,240 up from a negative value of ($293,869) at the end of 2013.
The Mentor Capital, Inc. transfer agent reports 4,175 shareholders as of December 31, 2014, with 14,483,215 shares issued. There are 14,504,766 Series D warrants outstanding at the 2014 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 2014 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 21,448 Mentor shares were repurchased out of the open market. The Company’s shares finished 2014 at a closing price of $0.60 per share representing a market capitalization of $8,689,929 compared to a 2013 year ending closing price of $0.20 per share and a corresponding market capitalization of $1,337,700.
The Company is managed by CEO, Chet Billingsley, (62) 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 (55) 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 32.15% interest in Mentor Capital with Mr. Billingsley’s interest reported at 24.45%.
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. 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 2013 and 2014 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 take significant positions in medical marijuana and cannabis companies to provide public market liquidity for founders, protection for investors and to incubate private cannabis companies that have the potential to be spun off as stand-alone pubic 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 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 31, 2015