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Mentor Capital Files 10-Q with 23% Revenue Growth for 2nd Qtr

MNTR | August 14, 2015

Book Value and Share Price increase 34% and 20% for Cannabis M&A Leader

Mentor Capital, Inc. (OTCQB: MNTR) announced that it has filed its quarterly 10-Q filing for the second quarter ending June 30, 2015 with the SEC.

The Company reports that for the three months ended June 30, 2015 Mentor had revenues of $628,386 and a gross profit of $237,701 with a resulting net loss of ($151,235) or (1.0 cents) per share. This is an improvement from the three months ended June 30, 2014 revenues of $509,105 and a corresponding loss of (6.7 cents) per share. For the six months ended June 30, 2015 Mentor had revenues of $1,202,236 and a gross profit of $475,637 with a net loss of ($368,944) or (2.4 cents) per share. This is an improvement over the six months ended June 30, 2014 revenues of $999,913. However for the six months ended June 30, 2014 Mentor experienced net income of $170,724 or 1.4 cents per share due to a one-time non-cash gain of $1,250,000 on its purchase of a majority interest in a subsidiary which was partially offset by one-time loan costs of $635,851.

The Mentor Capital, Inc. parent company has no non-affiliate debt, and raised $277,673 from approximately 32 shareholders during the six months ended June 2014 under the authority of an 11 USC 1145 order. $31,893 was invested into cannabis related companies during that six month period and the Company maintained a cash balance of $311,275 at June 30, 2015 compared to $326,228 at December 31, 2014. The Company closed the quarter ended June 30, 2015 with a book value of $4,152,143 up from $3,106,902 at the end of 2014.

The Mentor Capital, Inc. transfer agent reports 4,447 shareholders as of June 30, 2015, with 15,923,765 shares issued. There are 13,051,912 Series D warrants outstanding at the June 30, 2015 quarter-end at a strike price of $1.60 per share, and 689,159 Series H warrants are held by an investment bank at a $7.00 per share strike price. During the first six months of 2015, no unordered or unregistered share offerings were made and no equity was granted to directors, insiders, consultants or investor relations firms. A long-term 300,000 share repurchase plan was authorized in 2014 and during the three months ended June 30, 2015 12,300 Mentor shares were repurchased out of the open market resulting in a total of 33,748 shares repurchased under the long-term plan. The Company’s shares finished the quarter at a closing price of $0.72 per share representing a market capitalization of $11,465,111 compared to a 2014 year ending closing price of $0.60 per share and a corresponding market capitalization of $8,689,929.

The Company is managed by CEO, Chet Billingsley, (62) who founded Mentor Capital first as an acquisition partnership in 1985. He was qualified as a Registered Financial Advisor and received his undergraduate education at West Point before receiving a Master’s Degree in Applied Physics at Harvard University. CFO, Lori Stansfield, CPA (56) was most recently Director of Audit Services for a regional CPA firm. She graduated Magna cum Laude in accounting and received a Master’s Degree from the University of Colorado. Ms. Stansfield is certified as a public accountant in both Colorado and California. The three non-officer directors are independent and each has been or is a business owner and major shareholder. Altogether, the directors and officers hold a 32.15% interest in Mentor Capital with Mr. Billingsley’s interest reported at 24.45%.

On March 11, 2014 Mentor entered into an agreement with Bhang Corporation, and paid Bhang $1,500,000 between then and May 9, 2014. On June 24, 2014, Bhang repudiated the contract, giving Mentor nothing, but refused to return the $1,500,000 paid to Bhang and its owners. On August 11, 2014, Mentor filed a complaint in Federal District Court for the Northern District of California for rescission to seek a return of the $1,500,000. The court has ordered the parties to arbitration which is scheduled for February 8, 2016. Until the matter is resolved, Mentor considers the $1,500,000 invested in Bhang as an investment for which it must make periodic disclosures.

The 10-Q includes June 30, 2015 unaudited financials and can be referenced through the SEC’s EDGAR system at:

https://www.sec.gov/edgar/searchedgar/companysearch.html

Inputting the company name, Mentor Capital, Inc. or the Company’s CIK code which is 0001599117, will bring up the report. The 10-Q can also be viewed at the Company’s web site at the Investor’s Corner section under the Disclosures tab.

About Mentor Capital: The Company seeks to take significant positions in medical marijuana and cannabis companies to provide public market liquidity for founders, protection for investors and to incubate private cannabis companies that have the potential to be spun off as stand-alone public companies. Additional important information for investors is presented at: www.MentorCapital.com.

This press release is neither an offer to sell, nor a solicitation of offers to purchase, securities.

Forward Looking Statements: This press release contains forward-looking statements within the meaning of the federal securities laws, including statements concerning financial projections, financing activities, corporate combinations, product development activities and sales and licensing activities. Such forward-looking statements are not guarantees of future results or performance, are sometimes identified by words of condition such as “should,” “could,” “expects,” “may,” “intends,” “seeks,” “looks,” “moves,” or “plans” and are subject to a number of risks and uncertainties, known and unknown, that could cause actual results to differ materially from those intended or anticipated. Such risks include, without limitation: nonperformance of investments, partner and portfolio difficulties, potential delays in marketing and sales, problems securing the necessary financing to continue operations, problems involving continued illegality of cannabis products, potential of competitive products, services, and technologies, difficulties experienced in product development, in recruiting knowledgeable personnel and in protecting intellectual property. Further information concerning these and other risks is included in the Company’s Form 10 filing which, along with other very important information about the Company, can be found here:

http://mentorcapital.com/disclosures/

The Company undertakes no obligation to update or revise such forward-looking statements to reflect new information, events or circumstances occurring after the date of this press release.