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Arbitrator Grants Bhang Freedom From Contract with Mentor Capital

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Bhang

In what can be considered a partial win for both sides of the agreement, renowned United States edible cannabis brand, Bhang Inc., has been granted freedom from its contract with Mentor Capital after a two-year battle.

In 2014, Bhang Inc. signed a contract with a publicly traded company called Mentor Capital, after the CEO of Mentor, Chester Billingsley, announced he had $140 million that he wanted to invest in the cannabis industry. Mentor bought 60 percent of Bhang Inc. for a reported $39 million, according to Business Wire. While Mentor successfully made their first payment of $1.5 million, they failed to make any additional payments.

When Mentor Capital didn’t make their second scheduled payment for $7.5 million, Bhang publicly declared Mentor’s breach of contract, as well as a plan to void the deal. Two years later, Mentor Capital and Bhang Inc. wound up in arbitration, and the Arbitrator ruled to declare the contract null and void. All parties were to revert back to the positions they held before the agreement, Bhang was ordered to return Mentor’s down payment, and Mentor was ordered to pay Bhang back over $200,000, plus interest.

This is a great victory for Bhang Inc., a company that has continued to grow, despite this faulty deal. Bhang’s products have won a High Times Cannabis Cup six times, and the company’s leaders are ecstatic to continue moving forward creating high-quality edible products free from Mentor Capital’s hold.

Scott Van Rixel is the CEO of Bhang. In an interview with Business Wire he said, “We are very happy to be out from under Mentor. After entering the deal with Mentor their ‘foreign financing’ for our deal mysteriously evaporated. Mentor also failed to disclose that the SEC had issued a Cease and Desist Order against them for their stock dealings in the past. We have been trying to sever ties with Mentor ever since.”

Richard Sellers, the COO of Bhang, said, “This is a good result for us. We are ready to roll out several new products which we are very excited about. We can now get back to making industry-leading consumable cannabis products without Mentor hanging over our heads.”

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