The Agreement with Bhang Rescinded by Arbitration Panel Due to Bhang’s Breach
CALIFORNIA: Mentor Capital, 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.