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Capital Firm Agrees to Underwrite Entrex "Treasury Guaranteed" Private Investments
Chicago, IL – August 24, 2007 – Today Entrex, Inc. announces an agreement with a veteran Wall Street financial services firm to become managing broker/dealer or underwriter for various “Treasury Guaranteed Private Investment” instruments (TGpIs) developed around Entrex companies.
Entrex founder and CEO, Stephen H. Watkins, comments, “Through this collaboration on the TGpI products, we’re able to help Entrex Companies obtain distribution for their capital needs—specifically, utilizing a syndicate of Broker/Dealers who have networks of investors in this sector.”
Another source close to the deal intimates, “What is innovative about this financing opportunity is that investors have their principal guaranteed by US Treasuries, while receiving a percentage of revenue from the underlying companies for up to 10 years via quarterly royalty distributions. It’s anticipated to hit the marketplace in a big way, given how people have spent this month re-evaluating their investment strategies and tolerances.”
According to Entrex representatives, the TGpI model resolves a number of critical sticking points where private company investments are concerned – namely, principal protection, consistent liquidity and cash-flow. This one instrument addresses all three issues while offering the companies cost-effective capital investments. Entrex credits the dedicated Broker/Dealer syndicate with creating a consistent distribution channel for the product.
The TGpI structure accomplishes this, typically, by wrapping a secure 5-year United States Treasury with revenue royalty contract 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. The first product represents a $5.5 million dollar opportunity in $25,000 units available through various Brokers.
Essentially, 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 is used to purchase revenue royalty interests from the targeted company or companies. Thereby bringing needed growth capital to the company and immediate quarterly royalty revenues back to the investor.
Stephen H. Watkins, Entrex founder and CEO, clarifies: “Entrex is a neutral marketplace for private companies. We have no financial ties to these deals. We simply collect, aggregate and report corporate data in a consistent manner. It’s key information that capital needs to review when considering an investment. By joining our market space, companies are on the radar of capital sources which would likely never have identified them individually.”
For more information contact Entrex at (877)-4-Entrex 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) is reserved for their anticipated publicly traded entity.
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