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Entrex Offers Investors "Treasury Guaranteed Investments" for Private Companies
Chicago, IL – August 15, 2007 – Today Entrex, Inc. initiates offering accredited investors patent pending "Treasury Guaranteed Private Investment" instruments (TGpIs) recently debuted to the financial community.
Entrex founder and CEO, Stephen H. Watkins, comments, "TGpIs package investors principal loss protection, quarterly cash-flow -- with alternative investment returns from private companies in our marketplace. It is a unique vehicle for private companies yet a modified form has been used in the institutional market for years."
"What is really innovative about this financing opportunity is how investors receive 100% of their investment back (The NAP) -- plus a return from the private company for up to 10 years from quarterly royalty distributions. This solves a number of issues in private company investments ... namely principal return, liquidity and cash-flow .... Imagine this one instrument resolves all three issues while offering companies cost-effective capital investments."
The TGI model accomplishes this by wrapping a secure 5-year United States Treasury with revenue royalty contracts purchased from one or more private sector companies. Versions allow investors to maximize liquidity through a quarterly revenue royalty model or to increase investment value by utilizing equity conversion options.
"Equally interesting is how the Broker Dealers and Investment Banks are excited about this model ... Not only do they make commission on the transaction ... but units available in the $25,000 to $100,000 size are expected to bring new Beta investors to private company investing -- which historically have focused on Beta Investments (more secure, lower returns) versus typical Alpha Investments (less secure higher returns)."
"Entrex's first marketplace offering is a $5.5 million dollar opportunity in $100,000 units available through various Brokers. The deal structure provides complete return of their investment, the Net Asset Principal, at maturity of the U.S. Treasuries in five years -- while offering a 10 year quarterly royalty distribution to the investor."
"The way this works is the investor's money is divided into two chunks ... one to buy the Treasury which matures in five years to the invested principal amount (Net Asset Principal) ... and the balance which purchases revenue royalty interests from the company -- bringing capital to the company and the quarterly royalty revenues back to the investor."
"Right now each private company transaction is separate ... but we are working with a series of Investment banks creating various structured product with a diversified basket of private companies," said Watkins.
For more information contact Entrex at (877) 4Entrex or Swatkins@Entrex.net.
About Entrex:
Entrex works with private companies and accredited/institutional investors creating a venue where investors can find, research, track, manage and trade interests in private companies. Through its innovative approach and process, Entrex is creating a whole new path to capital for entrepreneurial businesses. Ticker symbol (NASDAQ: NTRX - News) is reserved for their anticipated publicly traded entity.
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