CBE Press has learned that Bhang Chocolate Company, Inc. (Bhang) satisfied the ruling by the American Arbitration Association (AAA) by paying $2,040,000 into receivership last week. Subsequently, Mentor Capital, Inc. (Mentor) has removed its liens against Bhang. These two actions appear to end the long running dispute between the two that dates back to 2014 when Mentor purchased 60 percent of Bhang for $39 million.
When the two parties submitted their differences to the American Arbitration Association, that panel decided that the parties had to go back to where they were before Mentor sent Bhang only $1.5 million of the contracted $39 million. It also required Bhang to repay the $1.5 million.The Bhang payment includes the $1,500,000 awarded by AAA in December of 2016, plus interest.
As a result of the Bhang payment, Mentor has filed AFFIDAVIT re 78 Order on Stipulation Release of Liens by Mentor Capital, Inc.. (Jeanne, Megan) (Filed on 11/27/2017) (Entered: 11/27/2017) so it appears that the three plus year old dispute is finally coming to an end.
CBE caught up with Chet Billingsley, CEO of Mentor Capital who issued the following statement. “Mentor Capital, Inc. is hopeful that we will soon be applying our long-held funds to the many cannabis opportunities before us.”
On the Bhang front, Scott Van Rixel told CBE, “Bhang is happy to put this behind us so we can focus on building our business, unencumbered, moving forward.”
Hopefully, both companies will learn from this and continue to help build the Cannabis Industry.