Dama Financial, Leading Provider of Access to Banking & Financial Solutions for Cannabis Businesses, Announces Completion of $12.6 Million Growth Equity Raise

Dama will leverage the new round of investment to accelerate its already impressive growth, continue to address the lack of financial service products being offered to the cannabis industry, recruit top talent, and scale the business with the backing and support of its investors.

CALIFORNIA: Dama Financial, the premier provider of access to banking and payment solutions through its FDIC-insured banking partners for the rapidly growing legal cannabis industry, today announced the completion of its $12.6 million Series B funding round, bringing Dama’s total funding to approximately $24 million to date. The round was led by a group of strategic new investors.  Currently serving over 7% of the legal cannabis businesses in California, operational in 12 states and with over 50,000 consumers with digital wallets in the United States, Dama has processed over $2 billion in transaction value since inception.

“In one of the fastest-growing industries in the world, Dama is bringing desperately needed financial services to businesses and consumers alike that are safe, secure, compliant and efficient,” said Anh Hatzopoulos, CEO and Co-founder at Dama. “We have spent four years building a platform to enable safe, compliant financial services for cannabis businesses and now is the time to take Dama to the next level.”

“Dama has brought together the right team and technology that will position them as a clear payment solutions leader in the cannabis industry for years to come,” said Dan Englander, of Ursula Investors. “Dama continues to innovate solutions for the serious payments problems faced by the industry and we are excited to see that accelerate. ”

Since November 2020, six new states have passed legalization measures for cannabis and a record-high percentage of Americans now support legalization. The cannabis industry is one of the fastest-growing in the world with the global cannabis market expected to hit $47 billion and U.S. sales of legal cannabis expected to quintuple by 2025. According to Arcview Research, legal cannabis sales in 2019 grew by 46% to $14.8 billion, which represents the highest annual rate of growth to date. Dama’s payment solutions solve complicated banking problems for cannabis dispensaries and facilitate seamless consumer transaction at mobile points of sale.

Mentor Capital Upgraded To OTCQX Best Market

CALIFORNIA: Mentor Capital, an M&A and funding provider for the cannabis and medical marijuana sector, will start to trade on the OTCQX Best Market effective today.

Mentor joins more than twenty companies during 2018 that have upgraded to OTCQX from the OTCQB® Venture Market, according to OTC Markets Group, Inc. U.S. investors can find current financial disclosure and Real-Time Level 2 quotes for the company on www.otcmarkets.com as well as other popular financial websites.

Marijuana and Cannabis M&A Company Trades on Top OTC Market Tier

Marijuana and Cannabis M&A Company Trades on Top OTC Market Tier

OTCQX is designed for established, investor-focused U.S. and international companies that have met high financial standards, are current in their financial reporting and have been sponsored by a professional third-party advisor. The OTCQX market is considered by the SEC as an “established public market” for the purpose of determining the public market price when registering securities for resale in equity line financings with the SEC.

“We are delighted to be moving up to OTCQX,” said Chet Billingsley, Chairman and CEO of Mentor Capital, Inc. “When we shifted to the medical marijuana market in 2013 we committed to bring professionalism and integrity to the cannabis sector like we had encountered both in Silicon Valley and while working in cancer related biotech outside of San Diego. We feel adherence to these high standards are signaled by this move to OTC Market’s top tier and represent an advantage to investors. Accordingly, this upgrade is a significant milestone for Mentor Capital and a step towards increasing the liquidity of our stock.”

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

Interest Remains High For Investment At New Jersey Cannabis Symposium

By Stu Zakim

A crowd of over 300 Cannabis investment enthusiasts attended the second edition of the NJ Cannabis Symposium in Newark NJ last week to hear two panels discussing the financial and investment opportunities that are and will be available to people involved in the Cannabis industry in New Jersey.

The hottest topics during the networking sessions last Thursday night in Newark NJ were a combination of Governor Murphy’s efforts towards legalization of adult use cannabis and his just announced expansion of medical cannabis mixed in with a lot ofs “was that Keith Stroup,” referring to NORML’s founder who was one of the featured speakers.

keith and brian and mrs

The evening got off to a standing ovation for Stroup, who, as the night’s first speaker, took the group on a journey through his first experiences with the plant in 1965 through today, declaring his continued passion for “Smoking Weed.”   Stroup was there to also announce a new service that NORML will offer a directory of attorneys with cannabis practices beyond criminal law as the need has grown beyond that specialization.  He thanked NJCS hosts Joshua Bauchner, Ellie Siegel and Gary Rosen who brought the idea of expanding the listing to Stroup and NORML.

The panels, moderated by BSC Group CEO Brian Staffa and NJ Cannabis Insider Editor in Chief Justin Zaremba, gave the audience a very thorough overview and insights into the what a legal industry will look like, what will be required to get into it and advice.  One of the crowd pleasers was the name badges that were color coded to say if you were looking for money, investing money or just an expert networker, which made the three networking sessions so worthwhile.

nj cannabis symposiumAccording to John Perricone, CEO of SunGrown Zero, a proprietary hybrid-light cultivation facility powered by natural sunlight and with precise climate control that delivers the lowest operating costs and highest profit margins of any Cannabis facility design, said he had been to many shows through his 20 years as a cultivator and thought the show delivered very good advice and information for the NJ industry.

BSC’s Staffa added “The interest in medical expansion licensing and adult use licensing continues to escalate daily and my phone does not stop ringing! It was exciting to see such a diverse group united in their enthusiasm for this new industry.”

The NJ Cannabis Symposium was hosted by BSC Group, Ansell Grimm & Aaron, PC, Marcum LLP and Longview Strategic. Sponsors include BioTrackTHC, Gottlieb, Rackman & Reisman, PC, Wilson Safe Company, The Marijuana Business Association (MJBA) and Bridge Strategic Communications LLC.

 

Learn More About Investing In The Legal Cannabis Industry

Could the green rush be the next gold rush? In the last few years, perhaps no other sector except technology has generated so much–well, buzz.

Claim your $5, and learn more about investing on Stash

Claim your $5, and learn more about investing on Stash

Claim your $5, and learn more about investing on Stash

 

 

Green Dot Labs Announces Strategic Partnership With Tuatara Capital

COLORADO: Green Dot LabsBoulder, Colo.-based producer of fine cannabis extracts, announced today the closing of its Series A round with a $3.3 million lead investment from Tuatara Capital.

“To date, Green Dot Labs has focused on developing quality-driven indoor cultivation and extraction methodologies and delivering high-end products to the Colorado market. Tuatara shares our commitment to producing quality cannabis products as well as our vision for innovation and regulatory leadership. We are confident that our partnership with Tuatara will support our company in reaching its full potential as a leader and standard-bearer in cannabis and concentrate production,” said Green Dot Labs Co-Founder and CEO Alana Malone.

Concentrates are currently the fastest-growing product segment in the cannabis industry, occupying the #2 share position overall. In 2016, recreational sales in this category reached combined sales of $498.8 million and grew by 83.9% in ColoradoWashington, and Oregon.

Cannabis Software And Consulting Leader MJ Freeway Closes $3 Million In Series B Extension Investment

COLORADO: MJ Freeway, a leading provider of business management solutions and consulting services for the cannabis industry, has announced $3 million in Series B extension financing raised from existing investors. MJ Freeway received new investments from existing investors Roger McNamee and Tao Capital Partners. With the unprecedented growth of the cannabis market, the company will use this funding to invest in continued market expansion.

In 2016, the medical and recreational marijuana industry saw tremendous growth with sweeping votes for cannabis across the US and the world. According to a recent report from Arcview Market Research, America’s marijuana industry is expected to reach $22.5 billion by 2021. As the inventors of patented seed-to-sale tracking software, the company sees the investment as an opportunity to continue to effectively support this growing industry.

“MJ Freeway has been the leader in business management solutions catering to the needs of this unique market for seven years,” said Roger McNamee. “The new Platform product is a game changer that will enable the industry and regulators to succeed as the industry grows and becomes mainstream.”

“Even industry insiders could not predict the success cannabis saw during the 2016 ballot as nine states weighed in on marijuana reform. With the expectation that the cannabis market is set to more than double by 2018, we chose to invest additional capital with MJ Freeway,” said Joby Pritzker, Managing Director of Tao Capital Partners and Chairman of the Marijuana Policy Project, the largest organization in the United States focused on marijuana policy reform.

“We are grateful for the partnership we’ve developed with Roger McNamee and Tao Capital Partners. It’s thrilling to have received this funding from such experienced, forward-thinking investors who continue to help strategically advise our position in the market,” said Jessica Billingsley, COO and Co-Founder of MJ Freeway.

With the recent launch of MJ Freeway’s new enterprise level traceability and business management software, the company has seen a tremendous surge in sales. Adds Amy Poinsett, CEO and Co-Founder, “The response to MJ Platform, our enterprise resource management software, has been very positive. This solution, specifically designed to ease the compliance and business management aspects for cannabis operators, is revolutionizing the space and this funding will enable us to meet the demand.”

The extension financing marks a total of $11 million raised in MJ Freeway’s Series B investment round.

Headset Announces $2.5 Million In Financing; Ramps Up Services To Cannabis Clients

WASHINGTON: Headset, a leading retail analytics firm for cannabis-related businesses closed $2.5 million in financing as part of its efforts to ramp up its suite of data products in the ever-competitive cannabis technology space.

Hypur Ventures, a leading-edge venture capital fund headquartered in Arizona, and Salveo Capital, a Chicago-based private-equity fund specializing in cannabis sector investments, have partnered with Headset to provide a deeper, richer set of tools for the emerging market.

“With this most recent fundraising, we are excited to be able to accelerate development and  adoption of Headset products across all legal cannabis markets,” said Cy Scott, co-founder and CEO. “Headset is well positioned to help the cannabis industry make more informed business decisions supported by retail transaction data.”

As the cannabis industry matures — eight states now have legalized recreational use and another 29 have medical marijuana programs — business intelligence is the key differentiator among successful and failing enterprises. Legal U.S. cannabis sales skyrocketed 17 percent to $5.4 billion in 2015. Most analysts forecast 25 percent compound annual growth in the next five years, expanding to market to 21.8 billion by 2020. As a comparison, this explosive industry growth curve mimics that of the cable TV business in the 1990s, which enjoyed a 19 percent annual growth and the broadband internet industry of the 2000s (29 percent).

For years, cannabis company’s struggled to tap into this revenue stream, suffering from a lack of actionable data insights that would inform business decisions. Headset, with its proprietary analytics, gives clients the information and tools to grow their business.

“Headset specializes in seeing ahead of the curve in terms of trends and innovation in the hyper-competitive cannabis market,” said Hypur Managing Director Christopher Male. “There’s a lot of synergy with the ecosystem of the Hypur Ventures portfolio.”

“Salveo Capital is excited to be partnered with Headset and its team,” said Managing Partner Michael Gruber. “Actionable data is critical to running a successful business, and Headset is empowering brands, product manufacturers, and retailers with insights not available previously.  Headset’s products will be a critical tool to a cannabis company’s success.”

With the $2.5 million infusion, Headset moves into 2017 in a strong position to help businesses as the new legal landscape expands. It will help close the information gap that has hampered companies in this emerging industry.

For more information or to request a free demo of the Headset platform please visit www.headset.io

2016 Cannabis Investment Study: 68% Of Investors Open to Businesses That Touch Marijuana

DISTRICT OF COLUMBIA: New Frontier Data, in partnership with Arcview Market Research and The Arcview Investor Network has released its 2016 Cannabis Investment Study. The study unveils insights from Arcview’s members and shows that despite the differences in regulations affecting businesses that touch cannabis and ancillary businesses that do not touch cannabis, the majority of investors (68%) are now interested in opportunities on both sides of the market.

“It is notable to see investors’ appetite is now broadening beyond just ancillary services where there has been less stigma and risk attached in the past. With the cannabis industry forecasted to grow at a compounded annual rate of 29% over the next four years, making it one of the fastest growing industries in the U.S., investors are now open to exploring any opportunity in the sector whether it touches the plant or not,” said New Frontier Data CEO and Founder Giadha DeCarcer.

“The Arcview Investor Network is, by far, the largest single source of deal flow in the fastest growing industry in America and the largest single group of investors placing capital in the sector. We were honored to be the focus of the first ever deep-dive study on actual investor’s attitudes and actions so far. There are many interesting insights in this report that could have far reaching impacts for entrepreneurs raising capital and other investors considering placing bets in this sector,” said Arcview Group CEO Troy Dayton.

When looking at the industry’s specific verticals, the highest proportion of investors were interested in ancillary commercial products (62%). Nearly half the investors (46%) were interested in non-flower products, reflecting the very strong growth in consumer demand for edibles and concentrates over the past few years. Cultivation facilities, which are the third most popular investor focus (38%), are especially attractive in markets that tightly limit the number of grower licenses. Other areas, including industrial equipment, hemp and consulting services, were of interest to a smaller group of investors, reflecting the more limited opportunities and the specialized business expertise required for those sectors.

Other key insights in this report include:

  • 65% of investors made their first investment in 2014 or later, and 71% expect to invest more in 2016 than they did in 2015.
  • Nine in ten investors are interested in medical and adult use markets, but only 36% are interested in CBD-only markets.
  • At the state level, the two markets investors are most interested in are California (57%) and Colorado (37%).
  • However, looking globally, 64% of investors expressed interest in the Canadian market, (a higher level of interest than was seen in any individual U.S. state market).
  • Preferred stock is the favored deal structure for 76% of the investors, followed by convertible debt at 73%. Public stocks were the least preferred investment approach.

The report is downloadable at https://frontierfinancials.com/investor2016 and www.ArcViewMarketResearch.com and can be ordered for $349.

Mentor Capital Awarded $1.5 Million from Bhang Corporation

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.