Mentor Capital, Inc. (OTCQB:MNTR) received an early Christmas present on Monday, as the company informed shareholders of the immediate receipt of a $2 million arbitration award stemming from litigation against Bhang Corporation. The 2016 decision by arbitrators found that Bhang corporation, “breached the Agreement by failing to deliver the [60% of Bhang] shares,” and that, “Bhang is not entitled to any damages.” Receipt of the funds is the conclusion of three years of litigation between the two companies.
Mentor Capital assists private cannabis companies in meeting their financial objectives. The hostilities between the two groups began in March 2014 when Mentor Capital attempted to purchase 60 percent of Bhang for almost $40 million in cash, stocks and other financial investment promises. Three months later Bhang reneged on the deal, but not before refusing to return $1.5 million in cash that the company had received upon signing the original agreement.
“This 60% acquisition was started during the early wild west years of emerging marijuana businesses. Bhang reported to us cash on its financials as being “far and away,” Facebook was used for contract communication, and the SEC delisted ten of the then seventy-six marijuana-related companies,” said Mentor CEO Chet Billingsley in a statement. “Our $2 million payment marks the end of the wildest era of legal cannabis businesses. Mentor looks forward to smoothly investing the $2 million it receives into other new larger cannabis companies, in the more mature, regulated and professional cannabis market of today.”
The U.S. Treasury is in current receipt of the $2 million payout, to which all parties have agreed to its release. Merry Christmas.
Friday Night’s Alright For Fighting
Oh baby don't it feel like heaven right now… The best-named company in the cannabis industry today, Friday Night Inc. (CSE:TGIF) announced on Wednesday their first-quarter financial results for the period ending October 31, 2017. Highlights from the quarter include CAD$2.5 million in revenue from operations in the United States, an all-time high gross profit of $1,133,979, and $5,637,152 cash-on-hand at the end of the period. Nevada was an especially fruitful market for the company during the quarter.
The announcement highlighted some moves made by the company during the period, including their August 4 announcement of an exclusive license agreement between their subsidiary Alternative Medicine Association and vaping brand “Krypted.” Friday Night’s CannaHemp brand entered the pet CBD market with their new product CannaHemp Paws. Plans to expand in the Nevada marketplace were executed upon as well during the quarter.
"These results prove how large our footprint is becoming and attest to how healthy the market is in Nevada,” observed Friday Night CEO Brayden Sutton. “Our team has worked incredibly hard to achieve such great results, and as we fine-tune operations and expand our facilities and partnerships within and outside the state, we are getting very close to becoming cash flow positive."
Former Aurora CFO Signs With Vodis
Oh honey I'm having trouble letting go… Vodis Pharmaceuticals Inc. (CSE:VP) revealed on Wednesday that former Aurora Cannabis (TSX:ACB) CFO John Bean would take the reigns as company director effective immediately. Bean, who is a CPA (BC), CA with experience in financial management and capital markets will sit as an independent director. His background in the cannabis industry is expected to provide the company with stranger corporate governance.
Vodis is a premium cannabis producer on both sides of the U.S. - Canadian border. The company has facilities in British Columbia and Washington State and is actively looking for opportunities in both the U.S. and Canada. However, due to restrictions on the Toronto Stock Exchange, Vodis does not receive any direct proceeds from its U.S. connections. All work in the United States occurs under a brand licensing program.
"John is a valuable addition to Vodis' Board, bringing significant financial and capital markets experience, as we enter a pivotal period in our corporate development," commented Ivan Miliovski, CEO of Vodis in a statement. "His wise counsel will serve our shareholders well, as we execute on our strategic plans." Included in Bean’s hiring package is an aggregate of 200,000 stock options at a price of $0.485 per share.
You belong among the wildflowers… On Tuesday Social Detention Inc. (OTC PINK:SODE) announced that subsidiary ELLA would begin a grow operation build in partnership with Cann American Holdings. The build located in Hopland, California is the second of two hoop houses, the first of which contains 200 plants. All parties expect the project to finish within 90 days.
And part of me you carry, part of me is gone… Medical marijuana developer and cultivator Indoor Harvest Corp. (OTCQB:INQD) concluded its Cannabis Production Pilot Agreement with Canopy Growth Corporation (TSX:WEED) and announced the results on Tuesday. Phase One and Phase Two results were released by the company, which can be read in full here. “We believe the initial results from our third-party trials have proven the potential for our technology,” stated Indoor Harvest’s founder and Chief of Cultivation Chad Sykes in a statement.
News and Notes
My old man was born to rock but he's still tryin' to beat the clock… Medical cannabis company Alternate Health Corp. (CSE:AHG) announced on Monday the beta testing and blockchain reporting phase of their new FlorPass patient management system. The new technology acts as a cannabis-specific electronic medical record, as well as a medical cannabis e-commerce platform. "FlorPass continues to gain momentum across the state, and Alternate Health is actively building a blockchain-powered network of key industry players through our technology assets," reported Dr. Michael Murphy, CEO of the company.
These days money don't go very far… On Monday springbig, a cannabis loyalty marketing technology company announced the closing of a funding round which brought in $3.2M in capital. Led by Green Acre Capital and HALLEY Venture Partners, the startup has now raised a total of $6.3 million. Doubling the size of the company, the money will help bring on a variety of new hires across different areas.
My sister got lucky, married a yuppie, took him for all he was worth… Smart Cannabis Corp., (OTC:SCNA), and SinglePoint Inc., (OTC:SING), signed a multifaceted joint venture and co-marketing agreement on Wednesday.
There's a freeway runnin' through the yard… Benchmark Botanics Inc. (CSE:BBT) completed the purchase of 10 acres of land for the company’s medical marijuana production facility located in Peachland, BC.