Mentor Capital Inc (OTCMKTS:MNTR) reported that the Federal Court has confirmed company’s arbitration award against Bhang Corporation, withdrawing their deal and awarding firm $1.5 million along with 10% interest. The judge had directed the parties to file a proposed form of judgment.
The details
Chet Billingsley, the CEO of Mentor, stated that in the spring of 2014, the company exchanged $1.5 million in cash and additional firm’s stock for 60% of Bhang, which they identified had less than $1 million in sales. After Bhang owners Richard Sellers, William Waggoner and Scott Van Rixel divided up and took the cash, Bhang rejected the deal, keeping the money, and denying to offer the Bhang shares. A senior settlement panel stated that they breached the deal. The panel allowed Mentor’s request to withdraw the investment contract which would lead in the return of Mentor cash of $1.5 million along with interest. The panel provided Bhang nothing by means of damages.
Billingsley added that after settlement, it would have been great if Bhang had compensated the net of over $1.626 million due. This seems achievable now because they guess that their operations had grown to around a $6 million sales rate, solidifying their access to funds that they retained. However, in company’s view, Bhang continues to repel making any return of their funds. That then pushes Mentor into the judgment and collections stage, where they enlist the assistance of the authorities and courts to patiently collect the money already awarded and outstanding to company.
Mentor Capital intends to come alongside and help private medical marijuana and cannabis firms and their founders in fulfilling their liquidity and financial goals, to add protection for shareholders and to help rear private cannabis firms.
In the last trading session, the stock price of Mentor declined over 11% to close the trading session at $1.74.
