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Entrex Licenses Treasury Guaranteed Investments for Private Company Investment
Chicago, IL – August 13, 2007 –Entrex, Inc. became the official licensor of the Patent Pending Treasury Guaranteed Private Investment instrument (TGPI) which recently debuted to accredited investors in the marketplace.
This vehicle packages investors’ need for loss mitigation (utilizing Treasuries) with the sought-after potential for alternative returns through the acquisition of Royalty Revenue Contracts from companies in the private sector. Versions of this structured product offer an opportunity to either maximize liquidity through the revenue royalty model or to design instruments with equity conversion options.
Entrex CEO, Stephen H. Watkins, explains the benefits of this new offering, “By wrapping a previously risky private sector investment with a U.S. Treasury guaranteed product an investor now has assurance for 100% return of their Net Asset Principal (NAP) while placing real working capital into a structure designed to provide alternative returns. Deal options like royalty distributions, or an annual coupon to be paid quarterly by the company, create an income stream back to investors while they await the five-year maturity of the Treasury to release the original Net Asset Principal.”
Initial offerings are expected to be based on capital investments into only one company at a time. However, it’s anticipated that this blueprint will be used to create diverse basket-type portfolios that appeal to institutional capital and others who are eager to put more cash to use -- deploying it to capture a combination of desired industrial or geographical markets while protecting their principal.
Watkins continues, “This financing methodology could be the pre-eminent instrument for private companies looking for capital in today's credit tightening market. To investors, it’s an asset class which was previously available only to those with an extremely high risk tolerance and a tremendous excess of investable capital. We’ve created an opportunity for those who never thought they had an appetite for alpha investments to reap significantly higher returns than their standard beta portfolio. Private companies now have a clear path to fair-cost capital which makes this instrument a benefit for all involved.”
Being neither an investment advisor, broker-dealer or placement agent, Entrex is a neutral marketplace for this venture. Their purpose is to provide financial transparency for the private companies involved in these deals. Their belief in the potential untapped returns from the sector stems from their years studying the Entrex sponsored Private Company Index (PCI) which is the known authority on private company growth and performance. For more information on the PCI visit www.privatecompanyindex.com.
For more information on Entrex and the TGPI, contact swatkins@entrex.net.
About Entrex:
Entrex works with private and non-reporting entrepreneurial 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) is reserved for their anticipated publicly traded entity.
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