Mentor Capital Harvests Half of Market Value in Cash from Side Investments and Reports 30% Q3 Sales Growth
Mentor Capital, Inc. (OTCQB: MNTR) announced 25% annualized sales growth to $7,472,367 for the trailing twelve months or $0.33 per share against a share price of $0.05 per share in its quarterly Form 10-Q filing for the third quarter ended September 30, 2022, filed with the Securities and Exchange Commission. During and subsequent to the quarter-end, Mentor collected cash from two maturing side investments totaling $705,370, which exceeds 50% of the Company's entire public market valuation.
The Company reports that for the nine months ended September 30, 2022, Mentor had revenues of $5,647,817 and a gross profit of $1,723,437, with a resulting net profit attributable to Mentor of (0.1) cents per share. This represents a 34.93% increase in revenue and a 32.20% increase in gross profit over the prior-year quarter ended September 30, 2021, in which Mentor had revenues of $4,185,887 and gross profit of $1,303,612.
On September 30, 2022, the Company had 22,941,357 common shares and 11 Series Q convertible preferred shares outstanding, plus 6,250,000 Series D warrants outstanding with an exercise price of $1.60 per share.
No equity was granted to directors, insiders, consultants, or investor relations firms during the nine quarters ending September 30, 2022. A long-term share repurchase plan was authorized in 2014, and on September 30, 2022, a total of 255,252 shares remain to be repurchased under the plan.
The Company's shares finished the quarter at a closing price of $0.05 per share, representing a market capitalization of $1,147,068 compared to a 2021 year-end closing price of $0.0508 per share and a corresponding market capitalization of $1,160,828. The Company finished the quarter with a book value of $2,398,466 or $0.10 per share, and a price-to-book ratio of 48% compared to a book value of $2,078,677, at 2021 year-end.
The Series Q Convertible Preferred Stock, for accredited investors, first valued at $10,000 per share on May 30, 2018, was valued at $20,843 per share on September 30, 2022, and 11 Series Q shares could have been converted at a Conversion Price of $0.063 per share into 3,639,262 Mentor common shares, which is an 18.5% compound annual rate of return for each of the last four years.
Beginning in March 2018, Mentor invested $417,664 to facilitate the purchase of manufacturing equipment to be leased to Pueblo West Organics, LLC ("Pueblo West"). As of September 13, 2022, $45,358 had been collected on the lease, and on September 27, 2022, Pueblo West exercised its early lease prepayment option and bought out the lease for $245,369, bringing total collections on the investment to $730,727.
As of the quarter ended September 30, 2022, the Company had invested $396,666 into a Legal Recovery Purchase Agreement with Electrum Partners, LLC against Aurora Cannabis Inc. Subsequent to quarter end, on November 19, 2022, Electrum paid Mentor $460,000 from the proceeds of the Aurora legal recovery. Concurrently, Mentor and Electrum will release and cancel any residual involvement with each other.
As of September 30, 2022, the Company had received $250,000 in loans from the CEO, Chet Billingsley. The loans bear interest at 7.8% per annum, compounded quarterly, and are due upon demand.
The Company is managed by Chairman and CEO Chet Billingsley (70), who founded Mentor Capital first as an acquisition partnership in 1985. Mr. Billingsley's interest is reported at 8.87% on a fully diluted basis as of September 30, 2022, with other directors and officers holding an additional 6.22% on a fully diluted basis.
The Form 10-Q may be referenced through the SEC's EDGAR system at: https://www.sec.gov/edgar/searchedgar/companysearch.html or at the Company's website: www.MentorCapital.com, where additional important information for investors can be found.
About Mentor Capital: The Company seeks to come alongside and assist private companies and their founders and investors in meeting their liquidity, equity financing, and acquisition objectives.
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, and 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, the potential of competitive products, services, and technologies, difficulties experienced in product development, in recruiting knowledgeable personnel, in protecting intellectual property, and the effects of adverse worldwide economic events, such as the coronavirus recovery and recent step-up in inflation. Further information concerning these and other risks is included in the Company's Form 10-Q filing, which, along with additional very important details on the Company, can be found here: https://ir.mentorcapital.com/all-sec-filings
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.
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