header

Top-Line Income Generation Rights Certificates

The Entrex Capital Market System is an innovative new securities exchange – specifically designed to provide financing for private and public companies with annual revenues between $5M to $250M.

Top-line Income Generation Rights Certificates (TIGRcubs™), which are issued and traded on the Entrex Exchange, enable issuer companies to receive lump sum capital in exchange for giving investors the right to a monthly fixed percentage of the Issuer’s top-line (GAAP) gross revenues. Operating much like royalty financing, TIGRcubs™ simulate debt or equity issuances depending on the cost of capital the Issuer determines to pay, and the risk / reward requirements of the Investor.

TIGRcubs

Significant advantage exist for companies in issuing TIGRcub™ securities, in that there is no equity ownership dilution to the current shareholders. This top-line focus elegantly avoids today’s awkward company valuation discussions, as well as the difficult analysis of predicting future EBITDA in unstable markets. Instead, investors, who receive a fixed percentage of the company’s variable gross revenue, truly become aligned in promoting company growth.

Also, unlike venture capitalist and private equity firms, which almost always require a seat on the Board of Directors to monitor their investment, TIGRcub™ investors do not impose this requirement. Moreover, TIGRcub™ inventors do not invest with the same time horizons as do venture capital and private equity investors, therefore, companies do not have the same pressures for a liquidity event by either going public or selling.

For more information, read “Obtain Financing By Leveraging Your Company’s Top-Line Revenues”, by Brian Ballo, a Managing Director at Corporate Finance Associates.