Mentor Capital, Inc. (MNTR) is a public operating company that acquires and provides liquidity for medical and social use cannabis companies. Mentor takes a significant position in the various members of our family of participating companies, but leaves operating control in the hands of the cannabis company founders. Because adult social use and medical marijuana opportunities often overlap, Mentor Capital 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, Parkinson’s disease, reducing ocular pressures from glaucoma and blunting chronic pain.
Mentor’s approach and capital structure allows its shareholders to buy an additional $23 million of Mentor shares at slight discount. As money is sent in to buy into the growing cannabis portfolio, the proceeds are split amongst the cannabis companies that are participating in the indirect sale. As more private cannabis companies join in the consortium, the MNTR share price may reflect higher valuer, other things being equal. The increasing share price may well increase the exercise of stock options and warrants by both Mentor Capital’s 5,000 often accredited shareholders and the public market in general. Using this approach, Mentor seeks to deliver a higher price to founders for a smaller slice of their business. Retaining control, receiving greater liquidity and working with a square corner organization are three 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 the new leading cancer sector (e.g. Dendreon, the market leader, dropped from $44 per share to $2.90 per share.) Mentor still retains only minor cancer investments and will complete the shift to the cannabis marketplace as profitable opportunities to exit present themselves.
Originally, Mentor Capital was formed in Silicon Valley in 1985 with $1,000 by current CEO, Chet Billingsley. The company completed dozens of early private acquisitions and went public in 1995.
Mentor Capital feels there is significant opportunity to approach the medical marijuana market as a business-focused, high-integrity, public company providing significantly more financing to private cannabis companies. As a result, Mentor will be able to return increasing stock value to the investing public. As a distinct first step in this direction, the Mentor CEO has placed his shares in escrow with a law firm at the end of 2013 to obviate the risk of pump and dump activity that has otherwise been associated by regulators with other public marijuana related firms.
Cannabis related firms seeking the advantages of the public market, including greater ease of funding, liquidity, a pathway for investor exit, plus the availability of acquisition currency – are encouraged to contact Mentor Capital to discuss how they might capture those public benefits by working through MNTR.