PotNetwork Holdings Prepares To List On Canadian Securities Exchange

FLORIDA: PotNetwork Holdings has announced today that it is preparing to list its common stock on the Canadian Securities Exchange operated by CNSX Markets Inc. The Company has engaged Canadian securities counsel to assist with the listing process. A CSE listing will allow the Company’s common stock to be dual listed in both U.S. and Canada.

PotNetwork HoldingThe application for a listing on the CSE will follow the Company’s transition to becoming a fully reporting Company with the SEC once its recent Form 10 filing becomes effective. The Company also intends to complete an uplisting to the OTCQB market tier on OTC Markets.

Kevin Hagen, CEO, stated, “Public attitudes around the world towards CBD are shifting as a result of people and regulators understanding the benefits of CBD. Cannabis-based products, in general, are experiencing explosive growth and we have begun an aggressive expansion of our business to further drive the growth of the Company into 2019. Integral to that expansion, is our decision that the time is right to list our stock on the Canadian market. The CSE already lists many companies in our industry, making this move an extremely logical choice that we believe will significantly benefit both the Company and its shareholders, across two countries instead of one.”

Mentor Capital Adds $2.3 Million To Cash and Cannabis Investment In 1st Quarter 2018

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

What You Need To Know About The Massachusetts Recreational Marijuana Program

By The Marijuana License

The Massachusetts Cannabis Control Commission just released the latest information on what rules and regulations business-owners can expect when the recreational marijuana program launches in July of 2018.

Here’s where the marijuana industry currently stands in Massachusetts: medical marijuana is legal and available for purchase for patients who register with the Medical Use of Marijuana Program. Meanwhile, even though the legalization of recreational marijuana was approved in November of 2016 the program is still months away from becoming a reality with marijuana business license applications expected to become available in July 2018. However, we just got a sneak peek into what the state’s future recreational marijuana program will look like thanks to the completion of public policy discussions held by the Cannabis Control Commission.

The discussions defined 5 main areas of recreational marijuana business licensing and operations: fees, inventory and record-keeping, business types, inspections and fines, and cash and banking.

Business Types

The state of Massachusetts will recognize and offer licenses to a whopping 11 types of recreational marijuana business:

  • Cultivation – Grows marijuana plants for sale to licensed manufacturers or retailers. Licenses are tiered based on the square footage of the cultivated area.
  • Craft Marijuana Cooperative
  • Microbusiness License – Microbusinesses operate on a smaller scale in terms of square footage and revenue and are able to participate in multiple areas of business without having to apply for separate licenses.
  • Manufacturing – Creates preparations, tinctures, concentrates and other forms of manufactured marijuana products for sale to licensed retail establishments
  • Independent Lab – Can test marijuana products for contaminants and concentration of THC and CBD
  • Retail – The state will offer separate licenses for brick & mortar stores with a physical location and stores that only offer delivery of recreational marijuana. Retailers can only sell marijuana products to the end consumer and customers must be 21 years of age or older.
  • Transporter – Transport marijuana plants or manufactured products for other licensed marijuana businesses
  • Research – Test marijuana products for scientific purposes
  • Social Consumption – Establishments that allow the consumption of recreational marijuana on their premises. The state will offer separate licenses to businesses that only allow the consumption of marijuana and those that offer mixed use. “Mixed use” has not been defined yet but may refer to food and non-alcoholic beverages. Smoking of marijuana within social consumption establishments will not be allowed.

Application and Licensing Fees

The state has set a flat application fee of $300 for all business types with the exception of Cultivation. Application fees for cultivators is tiered with Tier I through Tier IV applicants paying $100, $250, $400 and $600 respectively.

The state will also impose the following annual licensing fees on all businesses:


Tier I $1000

Tier II $2,500

Tier III $4,000

Tier IV $5,000

Craft Marijuana Cooperative: The same as Cultivation licensing fees

Microbusiness: $1,250

Manufacturing: $5,000

Independent Lab: $5,000

Retail: $5,000 (brick and mortar) $2,500 (delivery)

Transporter: $5,000

Research: $1,000

Social Consumption: $5,000 for primary use and a sliding scale for mixed use.

Inventory & Record Keeping

Licensed marijuana cultivators will be required to carry out a monthly inventory of plants they are currently cultivating and marijuana that has been stored. An additional annual inventory will be required that is comprehensive. Inventories must include the date they were performed, signatures from all who participated in the inventory and a summary of what was found.

All establishments will be required to implement a seed-to-sale tracking method and any business that cultivates, processes or sells marijuana for both medical and recreational use must have separate tracking of both classes of product.

Business must also keep historical records of their operating procedures, vendor training completion, background check reports, inventory records, personnel records, policies and procedures, staffing plans and the seed-to-sale tracking records.

Inspections and Fines

The commission decided to apply the same rules for inspections and penalties that are currently enforced for medical marijuana businesses. Methods for inspection may include random purchases made at retail by inspectors and the filing of complaints by employees and consumers. The commission will make use of license suspensions, sales limitations, quarantines and cease and desist orders to ensure compliance with regulations.

The framework for fines was also established, borrowing from the regulations applied to other industries in Massachusetts. Each incident can only incur up to a maximum fine of $25,000 and the fine can only be imposed upon the licensed entity rather than an individual. Written notice of fines must be provided as well as an option to appeal the fine.

Cash and Banking

Marijuana businesses have met major obstacles in trying to move their revenue legally through the banking system, often paying exorbitant fees for services. Massachusetts is proactively trying to improve this situation with two major actions.

First the state government will create its own agreement with state banks to allow retail establishments to make cash deposits electronically. Meanwhile, paying tax revenues to the state will also be made easier with the installation of new cash-handling machines placed across the state. These will allow businesses to deposit directly to the Massachusetts Department of Revenue at secure locations.

These policies have not yet been made official. The commission expects to have a final vote by the end of December 2017 before filing them as Draft Regulations.

The Marijuana License is a non-profit informational resource for patients and business-owners across the country looking to obtain a medical marijuana card or marijuana business license. It maintains an up-to-date database for each state.