Warrant Information

Warrant Discussion

As of April 2011, the capital structure of Mentor Capital is approximately 2 Million shares and 27 Million warrants. The proceeds of the warrants at the current strike prices are more than $125 Million.

The warrants are freely tradable and the shares that spring from the warrants are immediately freely trading. The warrants are already in the hands of approximately 1,500 warrant holders. If a warrant is not exercised timely when called, it can be reassigned by the company to another person to be exercised by them. More than 100 shareholders have asked to be designated to redeem warrants if the original holder does not exercise.

Mentor management has been in discussion with our original market maker about the process to file the 15(c)2-11 paperwork to make a market in the warrants, in addition to the market already made in the shares.

The (i) low dilution ratio of shares to warrants, (ii) freely tradable nature of warrants, (iii) possible arbitrage in the market for warrants, (iv) immediate tradability of shares, and (v) reassigning of warrants all are factors that would favor warrant exercise upon accumulation of assets.