MENTOR CAPITAL INC COM NPV (OTCMKTS:MNTR) is, as we have described in the past, one of the more interesting niche plays in the cannabis patch. We liked it in prior reviews, and it would seem the rest of the world is starting to like it as well. MNTR stock is breaking out sharply higher in recent days, in a move linked to the company’s announcement of several investor-friendly updates, including a broadening of the shareholder base — it has doubled its base of active shareholders who have shares in a brokerage account in the last quarter, rising 100% to 6,000 from 3,000 three months earlier.
“Each quarter I personally welcome every new fellow-owner reported by brokers with a signed note of appreciation, so this was a particularly happy recent task,” says Mentor Capital, Inc. CEO, Chet Billingsley. But the more interesting news is that this, paired with the company’s recent cash input as a result of the Bhang legal ruling, puts all the pieces into place for an uplisting to the top tier of the OTC, often seen as a stepping stone for an eventual move to the big board exchanges.
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. MNTR prefers to take significant position in its portfolio companies. Additionally, the firm invests only in companies that have actual 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.
According to company materials, “The Company 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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The company reports in its latest press release that, because of the growth and cash it has seen of late, “Mentor Capital, Inc. is looking to apply to join the 399 companies in the OTCQX, the top tier of the 10,000 companies organized by OTCMarkets.”
Apparently, all aspects of qualification are arranged, including net tangible asset levels, bid price, market makers, number of shareholders, market cap, audited financials, full SEC reporting, independent directors and an audit committee. Following the next board of directors meeting, it is anticipated that the formal paperwork will be submitted to OTCMarkets for their consideration.
The company also noted some cap table, governance, and compensation steps that will be on the table. All clearly point to a strategy of accommodating investor interest. And, so far, the strategy is working.
To wit: the MNTR chart shows 53% piled on for shareholders of the stock during just the past week (with most of that move coming on Friday’s breakout bar). Furthermore, the name has registered increased average transaction volume recently, with the past month seeing 68% more trading activity than the prior sustained average level.
This last point should not be overlooked due to the limited float size in the stock (of 12M shares). As savvy traders are well aware, ramping trading activity can overwhelm available supply in a stock with this type of small float, leading to an upward burst in prices. Since we last covered the name, MNTR stock has moved 51.6% higher.
Earning a current market cap value of $37.3M, Mentor Capital has nearly $590K in total current assets in the books, but we can expect this to grow, as a matter of record, as the settlement is taking onto the books. Total current liabilities sit at $573K. The company has pulled in $2.7 million in revenues over the trailing 12 months, with 9% sequential quarterly top line growth in place as of latest filing. This may be a very interesting story and we will look forward to updating it again soon. For continuing coverage on shares of MNTR stock, as well as our other hot stock picks, sign up for our free newsletter today and get our next hot stock pick!