First Quarter 10-Q Filing for Marijuana and Cannabis M&A Company
CALIFORNIA: Mentor Capital announced that it has filed its quarterly 10-Q filing for the first quarter ended March 31, 2018, with the Securities and Exchange Commission.
For the quarter ended March 31, 2018, Mentor had revenues of $1,016,199 and gross profit of $345,707 with a resulting net loss attributable to Mentor of ($151,704) or (0.7 cents) per share. This is an improvement in revenue from the prior year quarter ended March 31, 2017 revenues of $738,144 and gross profit of $263,896. The net loss attributable to Mentor for the prior year quarter ended March 31, 2017, was ($460,176) or (0.21 cents) per share.
The Mentor Capital, Inc. parent company has no non-affiliate debt and raised $607,098 during the three months ended March 31, 2018, under the authority of an 11 U.S.C. § 1145 order from designees redeeming unexercised warrants that have been called but were not exercised timely. The Company invested $867,130 in cannabis-related companies during the first three months of 2018. The Company maintained a cash balance of $2,655,082 at March 31, 2018, compared to a cash balance and cash in attorney escrow accounts of $1,148,726 at December 31, 2017. The Company closed the quarter ended March 31, 2018, with a book value of $6,586,185 up from $6,346,613 on December 31, 2017.
Mentor Capital, Inc. had approximately 13,086 shareholders reported as of March 31, 2018, with 23,076,676 shares issued. There were 87,456 Series B warrants outstanding at the March 31, 2018 quarter-end strike price of $0.11, 6,316,115 Series D warrants outstanding at a strike price of $1.60 per share, and 689,159 Series H warrants held by an investment bank at a $7.00 per share strike price. No new equity was granted to directors, insiders, consultants or investor relations firms in 2017 or 2018. A long-term 300,000 share repurchase plan was authorized in 2014, and on March 31, 2018, a total of 44,748 shares had been repurchased under the long-term plan. The Company finished the quarter at a closing price of $1.02 per share representing a market capitalization of $23,538,210 compared to a March 31, 2017, quarter-end closing price of $2.24 per share and a corresponding market capitalization of $50,538,771.
On January 23, 2018 the Company received a net payment of $1,758,949 in satisfaction of the Company’s judgment against Bhang Corporation and 117,000 shares of Mentor common stock, originally sold to two Bhang founders, were returned to Mentor in exchange for a payment of $286,719, which was offset from the accrued judgment of $2,045,668.
The Company is managed by Chairman and CEO Chet Billingsley (65), who founded Mentor Capital first as an acquisition partnership in 1985 and was qualified as a Registered Investment Advisor. He received his undergraduate education at West Point before earning a Master’s Degree in Applied Physics at Harvard University. His early career was at General Electric. Treasurer and CFO Lori Stansfield, CPA (58), 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 in Marketing from the University of Colorado. Ms. Stansfield is certified as a public accountant in both Colorado and California. Secretary Robert Meyer (78), director Stan Shaul (53), and director David Carlile (62) are independent directors, and each has been or is a business owner and major shareholder. Altogether, the directors and officers hold a 26.39% fully diluted interest in Mentor Capital with Mr. Billingsley’s interest reported at 20.03% on a fully diluted basis as of May 4, 2018.
The 10-Q includes March 31, 2018 unaudited financials and can be referenced through the SEC’s EDGAR system at https://www.sec.gov/edgar/searchedgar/companysearch.html.
Inputting the company name, Mentor Capital, Inc. or the Company’s CIK code which is 0001599117, will bring up the report. The 10-Q can also be viewed at the Company’s website at the Investor’s Corner section under the SEC Filings tab