MENTOR CAPITAL INC COM NPV (OTCMKTS:MNTR) has been running up the charts boosted by a narrative with its roots firmly in the company’s late September announcement of an agreement with GreenVision Systems, an Emerging Puerto Rico Medical Cannabis and Hemp Farming Company, as a key client for advisory services.
Recent action has seen 250% tacked on to share pricing for the listing in the past month. This is emblematic of the stock. MNTR has a history of dramatic rallies. Moreover, the company has witnessed a pop in interest, as transaction volume levels have recently pushed exceeding 510% over the long run average. It pays to take note of this fact due to the tiny float size in the stock (of 0 shares). As savvy traders are well aware, a jump in average daily transaction volume in a stock with a restricted float can unleash fireworks as supply is squeezed.
MENTOR CAPITAL INC COM NPV (OTCMKTS:MNTR) trumpets itself as a private equity firm specializing in acquisitions. The firm provides passive equity funding and liquidity to smaller companies and owners in the medical, marijuana and social use cannabis companies.
It invests in shelf IPOs and public and private companies and seeks to provide public market access to owners of small private companies. In case of shelf IPOs, the firm prefers to invest in companies with sales greater than $40 million. It prefers to take significant position in its portfolio companies. The firm invests only in companies that have earnings.
Mentor Capital, Inc. was founded in 1985 and is based in Ramona, California.
MNTR seeks to come alongside and assist private medical marijuana and cannabis companies and their founders in meeting their liquidity and financial objectives, to add protection for investors and to help incubate private cannabis companies.
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A recent additional announcement just last week has re-lit the first in MNTR shares, after the company announced that their jointly owned Puerto Rico medical cannabis subsidiary GreenVision Systems, has retained the Los Angeles SEC law firm, Dieterich and Associates, to file an S-1 registration statement for the 4,300+ new shareholders from Mentor Capital Inc.
“The 500,000 GreenVision shares being registered for the 4,300+ new shareholders from Mentor Capital will upon an effective registration statement become GreenVision’s float,” stated StereoVision’s CEO Jack Honour. “StereoVision is funding GreenVision’s start-up and with GreenVision’s authorization of 10mil shares, through a fully funded GreenVision Reg D 506c offering, StereoVision is expected to remain GreenVision’s largest stakeholder. Per the agreement, StereoVision receives a post financing 33% of all of GreenVision’s earnings in perpetuity and 33% of any potential sale price. We’re currently in substantive discussions with Broker-Dealers pursuant to GreenVision’s Reg D 506c offering.”
The other recent key revelation was the company’s rigorous analysis of the potential value of the Puerto Rican marijuana market, where it investigated first-hand the impact of the territory’s new medical marijuana legalization decree with industry and political participants and with its investee Green Vision Systems Corp.
“Puerto Rico, with a population of 3.6 million, projects to have a $300 million total cannabis market by the end of 2019,” analyzes Mentor Capital CEO Chet Billingsley. “That cannabis market, which may also evolve to include recreational use, should then bring $45 million in taxes and $36 million in profits to the island. Overall, 15,000 marijuana-related jobs will be created reducing the overall unemployment rate there from 15% to 13.5%.” Mentor estimates that because there are only a very limited number of major licenses to be granted, potentially first to market Green Vision Systems Corp. should target capturing 20% of this evolving regulated cannabis market for the legal cultivation, manufacturing and transportation of medical cannabis products in Puerto Rico, plus associated hemp farming.
Looking forward, Mentor CEO Chet Billingsley comments, “We work to increase the value of our 500,000 share investment in Green Vision Systems by our consulting efforts and the opportunity for future investment in the Puerto Rico cannabis market through Green Vision. After extensive meetings with the executive team, plus on the ground analysis in Puerto Rico, Mentor has concluded that the company can further increase the investment value received by its 4,000 shareholders by making a special pro rata dividend of Green Vision shares, upon notice by Green Vision of the effectiveness of a registration statement with the SEC, of the Green Vision shares Mentor receives.” Mentor Capital indicates that it will declare an ex-dividend date as the specific schedule for the effectiveness of a registration statement becomes certain.
Now commanding a market cap of $18M, MNTR has very little cash on the books, with total assets greater than $4.2M, which must be weighed relative to very little total accumulated debt. Hence, the company has a strong balance sheet situation. This picture largely comes down to how well they can translate the implicit value of their GreenVision relationship into tangible returns for shareholders. And most that story has yet to be written. For continuing coverage on shares of $MNTR stock, as well as our other hot stock picks, sign up for our free newsletter now and get our next hot stock pick!