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Private Company Composite Index (PCCI) Files Registration for Billion Dollar Investment Vehicle
Chicago, IL – June 8, 2007 – Newly formed firm, Private Company Composite Index, Inc. (PCCI), is closer to operational status this morning as their initial SB2 filing was submitted to the SEC. The company, formed by Stephen H. Watkins, CEO and Founder of Entrex Inc., plans to purchase royalty contracts from a diversified basket of approximately 1000 private companies—thereby claiming the rights to a percentage of their top-line revenues for a period of 20-50 years.
Mr. Watkins explains the premise for this new venture by saying, “The existing Entrex Private Company Index (PCI)—a benchmarking tool we use simply to measure overall performance growth and decline in the private sector—has shown a significant rise since its launch in Q3 2005. In calendar year 2006 alone the portfolio’s performance increased by over 52%. Thus far 2007 reflects growth of 60% from inception. Institutions and investors are taking notice and have approached us about a structure, like the PCCI, that would provide funding to companies in exchange for ‘alternative investment’ level distributions to shareholders.”
It’s expected that motivated private companies will eagerly engage in these royalty contract relationships as it’s a way for them to receive the growth funding they need to accomplish major business plan goals, without creating equity dilution or taking traditional debt on their books.
As for the timing of an operational launch of the PCCI, Entrex’s SEC/Edgar Filings Coordinator Tom Jurasek shares his view, “This initial SB2 filing will be reviewed by SEC officials and we should hear comments from them in the next 30 days. It’s assumed we’ll then need to file an amended version of the document which will enable us to move forward tactically, with institutional investors likely to be the first to become financially involved.”
For more information about Entrex and revenue royalty contracts see www.entrex.net. For more information about the previously existing Private Company Index visit www.privatecompanyindex.com.
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