Frequently Asked Questions

Q: What is the Cancer Immunotherapy Index?

A: The Cancer Immunotherapy Index is an equally weighted information only index that tracks the gain in what started as ten (10) leading cancer immunotherapy companies and has been tracked since July 10, 2009, when Mentor Capital first announced its investment into the cancer immunotherapy sector.

Q: Does MNTR Advise Investors to Buy the Cancer Immunotherapy Index Companies?

A: In plain English, there are three important points to realize here:

First, the Cancer Immunotherapy Index includes all companies Mentor Capital recognizes as substantially concentrated in cancer immunotherapy work without regard to quality, potential or risk. That means one CI Index company could be on the verge of bankruptcy and the next ready for major FDA approval.

Second, Mentor Capital, Inc. specifically is not giving investment advice by regularly publishing this mathematically calculated, information only, CI Index that portrays historic data.

Third, biotech and especially leading edge biotech in an emerging complicated sector like cancer immunotherapy involves complex science, FDA regulatory challenges, and substantial financial risk. Seek expert advice to assist you before you consider investing in MNTR or Cancer Immunotherapy Index Companies.

Q: If I buy MNTR shares am I buying only into the Cancer Immunotherapy Index Fund?

A: Mentor Capital has invested some new capital into all companies in the Cancer Immunotherapy Index (which includes Quantum Immunologics) and will continue either by acquisitions or stock purchases. However, Mentor Capital does not invest evenly and overweights its investment into those companies it believes have the greatest potential. Mentor Capital may also invest or acquire new immunotherapy companies it expects will be good candidates to migrate to the Cancer Immunotherapy Index. Additional acquisitions may focus on the assembling of investment banking assets to support the overall cancer fighting mission. Finally, Mentor Capital maintains a conservatively invested reserve position, and has legacy assets that it has not yet decided how or when to most effectively operate or liquidate.

Q: I have a lot of warrants, will I be able to do a cashless exercise?

A: Probably, No. Asking your broker to do a cashless exercise is somewhat like asking your bank to cash a large out-of-state check. In theory he can, but he only will if you are a great client, and it is a check from a known entity.

Q: When can I exercise my warrants? Do I have to wait until they are called?

A: You can always exercise your warrants at any time. Some folks did even before trading started. To help start the conversation with your advisers recognize that there are two competing forces that you would naturally consider. First, if you exercise a rapidly gaining stock right at the strike price (e.g. at $1 on the $1 warrants) then you pay no taxes. If instead, you wait to exercise, and it rises to, say $4, then the $3 gain is short-term capital gain at the time of exercise, even if you never sell. In the example, by paying the same $1 earlier, rather than later, approximately $1 in taxes are permanently shielded. The second case is if taxes are not an issue. Then you would want to wait until the call to exercise. In that way, you keep your money working for you earning interest as long as possible.

As always, check with your own tax adviser and financial adviser because these are complex issues beyond the scope of a FAQ response.