SAN DIEGO--(BUSINESS WIRE)--Mentor Capital, Inc. (OTCQB: MNTR) CEO Chet Billingsley reported that since August 15, 2016 he has contractually limited his stock sale orders to a level 13,500 to 16,000 shares in any given week and the Mentor share price rose 600%. For the preceding thirteen years he had sold zero shares. Since 2014 this was emphasized by placing his shares in a contractual lock box escrow. The recent activity falls under the SEC 10b5-1 safe harbor. Not all orders sell because they may never be placed at the BID price and are administered in a steady state fashion by an independent third party.
“Both when there are zero sales by the executive or modest but level sales under contract, shareholders are assured there is no dumping going on. I will never sell all of the shares in the company I founded in 1985, but this current rate of leaking shares into the market is less than 1% of our daily volume and could continue steadily for more six years,” explains Billingsley. “I find the approach we are taking at Mentor is virtually ideal for shareholders. The CEO has a comparatively low $104,000 annual salary with the possibility of bonus based on the share price, and he is all in the business with no outside investments. As founder he has a block of shares but does not receive more. This argues strongly against dilution and in favor of a strong share price. I have to say I find it motivating,” Billingsley concludes.
The Company has reported on the 10b5-1 Plan before but wanted to draw attention to and more fully explain details because of an anomaly in the SEC reporting system. If a less responsible CEO makes a large stock sale at an opportune time it is reported once as a small paperwork item on one SEC Form 4. If the Mentor CEO 10b5-1 administrator makes small sales over time to minimize price impact in the market each individual day of sales, even if just 500 shares, must be reported to the SEC on a Form 4 within 48 hours. The potentially misleading result is a massive sale can appear small and small sales can appear massive. Mentor expects in good times and in bad that it will continue to report a number of smaller transactions for its CEO on a level basis.
About Mentor Capital: 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. 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, in collecting judgments and in protecting intellectual property. Further information concerning these and other risks is included in the Company’s Form 10-K and 10-Q filings which, along with other very important information about the Company, can be found here:
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.