MJBulls 0023 Mentor Capital Transcript

Dan Humiston: [00:00:00] Today's show and the following message are brought to you by Veterans for Cannibus veterans for cannabis is the leading provider of full spectrum hemp oil. We're ten dollars from every purchase of their one ounce hemp oil goes directly to supporting veterans to offset the costs of alternative medicine. Visit W. W. W. V F C. USA Today and support veterans who need access to cannabis medicine.


Chet Billingsley: [00:00:25] You reached the point where you could go public the the main purpose business purpose is to get liquidity or money for owners to get money for the business. Raise money or to use the stock of the company as an acquisition currency.


Dan Humiston: [00:00:49] From Buminit media. It's the MJ bulls podcast a show about raising cannabis capital capital.


Dan Humiston: [00:00:58] I'm dan humison and on today's show part 7 in our series. Things to Know When raising Cannabis Capital. Check Billingsley from Mentor Capital joins us to talk about the different fund raising stages.


Dan Humiston: [00:01:17] Thanks for being on the MJBulls podcast.


Chet Billingsley: [00:01:20] Dan always great to talk to you.


Dan Humiston: [00:01:22] Today we're continuing our series things to know when raising Cannabis Capital. And we have chet Billingsley from mentor capital to talk to us about the life cycle of raising capital. But before we jump into that chet you got to tell our listeners how a West Point Harvard MIT grad with just a thousand dollars started mentor capital in Silicon Valley in 1985 and grew it to one of the most successful publicly traded Cannibus investment firms in the country.


Chet Billingsley: [00:01:50] Well GE was going to send me to Schenectady to New York and I was in Silicon Valley. I thought well I sort of like California. So I started had a thousand dollars and bought a tanning salon and grew that into a chain of suntanned centers and gyms and trucking companies and all manner of things took that public with a reggae offering. Then came down from Silicon Valley down to San Diego invested in the cancer space and I and I studied difficult to treat cancers at MIT. Then that particular sector had two legs chopped out from under it was cancer immunotherapies by the previous administration. And I said well what am I going to do and somebody approached me and said Would you consider a cancer treatment in the medical marijuana space. And my first reaction was you got to be kidding and I got more white here than gray hair is like asking a chicken to go surfing in the ocean. But the scientists in me said well this is fantastic treatment for cancer patients and I should give it a look. And I felt I could contribute by adding additional medical expertise and investment professionalism and integrity to the space. So we started in 2013 and have been added in this space ever since 2013 when you started. Then and you've been investing in different Cannibus companies since then.


Dan Humiston: [00:03:18] Yes well you have a lot of experience in raising capital and running companies. So I I think you're the perfect person to talk to us about the different stages of raising cannabis capital so you know why don't we just jump into it. What's the first stage of raising capital.


Chet Billingsley: [00:03:34] The first thing you're going to do is put up your own money. Look to your own resources. And one of the easiest things to do is use credit card. It's almost impossible to get a business loan but it's very easy to get credit card loans and that usually will get started.


Dan Humiston: [00:03:53] And that scares people but most people that earn business would be shocked how many people funded their business on the back of credit cards to get it going. Now that you've got it up and running are you. What's the next step.


Chet Billingsley: [00:04:05] You start with your friends and family round and try to get it as much as you can. And you have to be responsible as you're doing this don't take more money from people than they can afford. And it's always good when you're talking to an investor to be able to say well my mother is in the deal really kept a great little psychological tip.


Dan Humiston: [00:04:29] But just a quick thank you to one of our sponsors Bridge West LLC is one of the first accounting firms in the world to focus solely on the cannabis industry. It is your one stop provider for accounting audit tax and advisory service. They're offering a free 30 minute intro call to one of their leadership teams to all MJ Bull's listeners go to bridge west CPA dot com and now back to the show.


Dan Humiston: [00:04:56] Personality you're up and you have a track record of raising capital from people is at this point you start to reach out some angel investors.


Chet Billingsley: [00:05:05] The next step after this try to get to an angel investor to sort of sponsor you. And it's important to recognize that the angel investors and any investor really are often making that investment for emotional reasons. It's not purely a numbers game. They want to sponsor the young kids and feel like they're being useful because they've had their success earlier in life.


Dan Humiston: [00:05:34] friend and family, credit cards you went to your friends and family. You have an angel investor next stop.


Chet Billingsley: [00:05:40] So at that time there's private equity firms out there now and they will want to give you money or business of the form that that takes is convertible debt. So if you tumble will they still have you on the debt side but they still get the upside if you do well by this point. You're looking at a substantial expansion or acquisition. Now you reach the point where you could go public. The main purpose in business purpose is to get liquidity or money for owners to get money for the business to raise money or to use the stock of the company as an acquisition currency. So really it's mostly about getting money. After your public investment banks will work with you to do a secondary offering. So if you're working with a good investment bank they will do that for you.


Dan Humiston: [00:06:48] we've been speaking with Chet BILLINGSLEY The CEO of mentor capital which by the way all mentor capital's information including chet's email is on the mjbulls website . We didn't talk about this when you were telling us your story but mentor capital as a publicly traded company.


Dan Humiston: [00:07:06] And if somebody was interested in purchasing shares of stock in your company what's the symbol the symbol.


Chet Billingsley: [00:07:11] MNTR mentor without the vowels. And we've been talking about going public. And of course if somebody is interested in getting ready for sale spin off or to go public or to operate in a public environment and you know they have sales already passed a million dollars a year give us a call and we'll talk to you.


Dan Humiston: [00:07:36] Yeah. Clearly you've been through this quite a few times you've done it for yourself and you've done it for your client so you know your way around this process. Chet a lot of good information I really appreciate it taking the time to share this information with all of our listeners today. Thank you very much.


Chet Billingsley: [00:07:51] Thank you. Dan good talking to you.


Dan Humiston: [00:07:53] It was good talking to you.


[00:07:53] Good luck Hey just a quick reminder that you can become an MJbulls member for only four ninety nine a month and enjoy exclusive access to companies information like their pitch decks and investment opportunities. Sign up today at MJbulls dot com.


Dan Humiston: [00:08:13] Thanks for listening to the MJ bulls podcast to learn more about today's guests or to apply to be a guest. Visit our Web site at M.J. Bulls .com and if you like our show give us a view on iTunes. Today's show was produced by bu,,init media. I'm Dan Humiston and you've been listening to the mjbulls podcast.