Price per share reflects 123.68% premium to stock closing price Monday
By Susanna Moon
Chicago, April 14 – Mentor Capital, Inc. said it has entered into a contract to receive $1,287,000 of funding to support its medical marijuana efforts in exchange for 757,059 shares at a price of $1.70 per share.
The price per share is a 123.68% premium to the company’s closing price on April 13.
The long-term funding will be delivered evenly over an 11-year schedule, which implies a 17.73% annual growth rate for Mentor Capital, according to a company press release.
The investing party will become a 4.9% shareholder in exchange for cash infusions over time equal to about 11.5% of the current market capitalization of Mentor Capital, the release noted.
“This is the second step we have taken with this angel investor and we appreciate the continued vote of confidence. In our previously concluded $117,000 transaction, Mentor profited by a 30% discount over eight months or a 45% annualized rate of return,” Chet Billingsley, the company’s chief executive officer, said in the press release.
“These are each examples of how we attempt to make every corporate investment action accretive to our shareholders.”
Mentor Capital is a cannabis industry company based in San Diego.
| Issuer: | Mentor Capital, Inc.
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| Issue: | Common stock
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| Amount: | $1,287,000
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| Shares: | 757,059
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| Price: | $1.70
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| Warrants: | No
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| Pricing date: | April 14
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| Stock symbol: | OTCBB: MNTR
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| Stock price: | $0.76 at close April 13
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| Market cap: | $11.01 million
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