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SHARE PRICE $1.90
"MNTR started the Cannabis "Fund*" off on Friday by announcing that 100% of HempCon had agreed to be purchased for $7 Million."
NEWS LINK
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Mentor’s approach and capital structure allows its shareholders to buy an additional $140 million of Mentor shares at approximately a 12.5% discount. As money is sent in to buy into the growing cannabis portfolio, the proceeds are split pro rata amongst the cannabis companies that are participating in the indirect sale in order to receive funding. As more private cannabis companies join in the consortium, the higher the MNTR share price is pushed, other things being equal. The increasing share price increases the exercise of stock options and warrants by both Mentor Capital’s 1,500 mostly accredited shareholders and the public market in general. Using this approach, Mentor can deliver a higher price to founders for a smaller slice of their business. Retaining control and receiving more cash are the two key advantages to cannabis founders working with Mentor Capital, Inc.
Mentor Capital migrated to the cannabis space from leading edge cancer investments when government actions collapsed cancer investments. (e.g. Dendreon, the sector leader, dropped from $44 per share to $2.90 per-share.) Mentor still retains some cancer investments, but will complete the shift to cannabis as profitable opportunities present themselves.
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6M OS
1.5M FLOAT.
http://mentorcapital.com/portfolio/#
BUSINESS DESCRIPION:
PORTFOLIO FUND: $140M allocated
Mentor Capital Negotiates to Fund Eighteen Leading Cannabis Brands
COMPANIES THAT MNTR HAS INVESTMENTS/SHARES IN THE FOLLOWING FOR 2014:
1. CANNAVEST 49.90
2. GW PHARMACEUTICALS 42.40
3. MJNA .18
---COMPLETE LIST----
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INVESTING STRATEGY
To lead and capture a major portion of the potential 30 times increase in the legal cannabis market Mentor Capital's investing strategy is:
1) Be first with significant public money
2) Quickly roll up the best cannabis participants in a public vehicle
3) Bring a high level of character and business professionalism to the marijuana investing sector
Mentor is authorized (almost like a group IPO) to raise $140 million from the public market and is committing those funds to the cannabis companies that join in the cooperative portfolio, trading a slice (10% to 60%) of their business in exchange for public market funding. To Mentor's knowledge, Mentor Capital is the first public company to commit this level of a cash raise to the cannabis market.
In any very rapidly growing situation, companies need large amounts of capital to keep pace with the growth opportunity. It is hoped that the cannabis firms Mentor funds will have a significant advantage in absorbing a large share of the expected business expansion.
In order to apply the $140 million fully and quickly, Mentor Capital has been very aggressive in recruiting cannabis companies to secure their share of a funding portfolio. A very high price in future proceeds is offered, against the backstop of starting within a $1.4 Billion legal market and looking to expand to encompass the $50 billion already existing illegal market, all implying a 30x market growth.
The current public market multipliers are in the 30x to 80x revenues range. This, quite possibly because there is a projected near term market growth of 30 times. Almost any reasonably solid, well-financed company will do well in this sort of environment. Mentor is quite experienced in picking solid companies and even very high offers will still be much less than 30x revenues. This all gives encouragement to green light a roll up of the best available cannabis companies in each sector and region. This investment and acquisition approach may have an expectedly high return but surprisingly low business risk, in our examination.
A final plank in the Mentor Capital investment strategy is qualitative and is pushing to bring a high degree of business professionalism and transactional integrity to the marijuana public market. As a first, the CEO voluntarily placed all of his MNTR shares in escrow with a law firm. This, to address the widespread concerns that pump and dump schemes are prevalent in the medical marijuana market. Additionally, the CEO is taking the role of the non-user, designated driver in this cannabis industry involvement. Finally, following from the West Point, Harvard, General Electric formal approach to the world, all interactions are structured to be 100% business and win-win-win. In an open way all business transactions should be a win for Mentor, for cannabis founders, and the investing public. MNTR = $7M ASSETS AND = $140M TO LEND
"MNTR started the Cannabis "Fund*" off on Friday by announcing that 100% of HempCon had agreed to be purchased for $7 Million."
This formal, win-win-win, all business approach is a natural one for Mentor Capital. Management hopes in this way to attract the cannabis founders of the best cannabis brands. These founders are brought together with conservative investors who are still looking for a solid business approach within this extraordinary opportunity.
The result may be one of the most interesting and significant public companies in the emerging cannabis industry.
Metro Capital, Inc. (MNTR) is a public company that invests in medical and social use cannabis companies. Mentor takes a 10% to 60% position in the family of participating companies, but leaves operating control firmly in the hands of the cannabis company founders. Because adult social use and medical marijuana opportunities often overlap, Mentor Capital also participates in the legal recreational marijuana market. However, Mentor’s preferred focus is medical, and the company seeks to facilitate the application of cannabis to cancer wasting, calming seizures and Parkinson disease, reducing ocular pressures from glaucoma, and blunting chronic pain.Great perspective there. Same % gain as Friday and we're at 18 bucks a share? Huge
Mentor’s approach and capital structure allows its shareholders to buy an additional $140 million of Mentor shares at approximately a 12.5% discount. As money is sent in to buy into the growing cannabis portfolio, the proceeds are split pro rata amongst the cannabis companies that are participating in the indirect sale in order to receive funding. As more private cannabis companies join in the consortium, the higher the MNTR share price is pushed, other things being equal. The increasing share price increases the exercise of stock options and warrants by both Mentor Capital’s 1,500 mostly accredited shareholders and the public market in general. Using this approach, Mentor can deliver a higher price to founders for a smaller slice of their business. Retaining control and receiving more cash are the two key advantages to cannabis founders working with Mentor Capital, Inc.
Mentor Capital, Inc. (otc markets:MNTR) announced its first major acquisition for cannabis funding will be HempCon, Inc. That medical marijuana convention company is hosting hemp industry pioneers at the San Jose Convention Center January 17-19th. The agreement by principals and letter of intent outlines that HempCon, Inc. will receive $7.0 Million from Mentor Capital investors plus future public market appreciation for a 100% interest. Positioning HempCon to be the first to be funded by the first operating public cannabis fund of its kind should be wholly credited to savvy action by HempCon founder Edwin Kwong, who had already been approached by two other public companies, reports Mentor Capital CEO Chester Billingsley. Mentor Capital, Inc. (OTCMKTS:MNTR) CEO, Chester Billingsley, defines the ?Cannabis Cancan? as the pump and dump activity that the securities agencies have warned about for the public marijuana sector.
These can be recognized by the characteristic trading pattern of about a 60% upward sloping chart with lots of trading (the dump) near the top on the way up. This is accompanied by a number of information press releases, ironically much like this one, that get attention but do not themselves indicate an improving bottom line. Invariably, the public hangs on for too long in this up and down chorus line,.
To distance itself from these hurtful practices Mentor Capital, Inc. has taken several preventative steps and invites other cannabis CEOs to strongly consider doing the same. First, the Mentor Capital CEOs shares are locked in an escrow. He has no shares to dump. Second, no shares are issued except for cash or assets. There are just no new 144 shares issued to management, consultants or the board. Third, no IR firm is hired, and in the current market, one would hardly be needed. Finally, the CEO salary is $104,000 per year and has been for 15 years.
As a result of these shareholder defending actions Mentor Capital, Inc. has only six million shares outstanding rather than the more typical cannabis industry norm of hundreds of millions with that associated dilution. If all Mentor warrants are exercised, outstanding shares would expand to 29 Million from the exercise. At that time, the company could then theoretically hold the now projected proceeds of those warrants which would be $140 Million. That is $4.82 per share cash if at a purely theoretical share price of $7.00 per share. 100% of these projected funds are earmarked for cannabis investment and acquisition.
Having negated any pump and dump risk, Mentor Capital?s current warning is for potential shareholders to also avoid any artificially high share price triggered by a potential short squeeze. Approximately one million shares traded in the first two and only hours of Mentor Capital active cannabis related trading. However, according to MC Transfer, shareholders have only deposited two million shares into their brokerage accounts, so far. Until the active float normalizes, market makers may have difficulty covering what they have already sold.
Those merger discussions between the CEOs are a snapshot of the turning page in the marijuana industry as it shifts from a movement to a financed business. Sober bankers now meet with serious founders and provide substantial capital for reward, expansion and roll-up. Quickly shifting Mentor Capital’s authorization for shareholders to directly purchase $140 million in now cannabis related shares, gives other cannabis founders and the interested public a timely opportunity to participate in this market from a fresh start. To endorse confidence in his long-term investment focus the Mentor CEO has placed his shares in a voluntary escrow.
“Mentor has a medical history and is most interested in the positive effect of cannabis slowing the electric signal at the synapse – meaning, it calms things,” explains Billingsley. “Nausea is settled, seizures don’t build to a cascade, shaking is smoothed and pain is reduced. On the side of social use, we note that marijuana is only half as addicting as alcohol, you can’t overdose, people don’t fight and they actually drive slower. Drunkenness is reduced by a substitution effect, and the social and fiscal costs of incarceration are reduced,” he concludes.
Mentor Capital, Inc., an operating company, by acquisition or investment, seeks to fund a significant portion of the $140 Million that would flow from the exercise of warrants its shareholders already hold into leading cannabis brands. Mentor Capital emphasizes legal compliance and its CEO’s shares are held in escrow
********* BUY , BUY, BUY Our Target Price is $15 a share by Years end 2014 !!
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