Fund Managers are touting the benefits of TIGRcub™ Security structure for investments
Alternative to equity financing is turning heads as a funding solution.
Chicago, IL – Mar. 11, 2008 Andrew D. Clapp, Managing Partner of Waltham, Mass., based Arctaris Capital Partners, LLC, recently released a public white paper detailing his perspective on the use of the TIGRcub™ security structure, as a Fund Manager, and the benefits to companies that utilize the security to raise capital.
In the paper, titled “Funding Companies in a Deleveraged Economy: A New Corporate Finance Solution for Companies and Investors,” Clapp explains that, TIGRcubs™, an acronym for Top-line Income Generation Rights Certificates, “enable a firm to raise capital and repay investors with a fixed percentage of the company’s top line gross revenues for a finite period of time—without having to give up equity.” At first glance TIGRcubs™ may appear similar to financings known as royalty-based transactions; however, TIGRcub™ securities differ materially from royalty contracts, in both form and substance, when legal and accounting respects are considered.”
These days issuers and investors are “at a juncture… where the need for capital is great, but the availability of traditional bank or venture financing has become scarce, even for profitable companies,” Clapp continues. The TIGRcub™ security offers a practical and transparent tool, which companies can use with existing or new investors, to raise needed capital without suffering the impact of dilution at today’s lower valuations. Arctaris advises companies on how to implement TIGRcub™ financing and also provides or raises the capital as needed.
The paper describes other advantages of TIGRcub™ financing and the key characteristics of companies that may be a fit for TIGRcubs™.
TIGRcubs™ were developed by, and are being licensed by Chicago-based Entrex Inc. They manage the TIGRcub™ issuance process and post-issuance servicing of TIGRcub™ contracts. Entrex CEO, Stephen H. Watkins says, “I’m pleased that fund managers and professionals like Clapp are applying the benefits of the TIGRcub™ structure and promoting the use of the security.” He adds, “Clapp’s white paper is a good introduction to the TIGRcub™ platform as he discusses various applications, such as growth capital or bridge financing, and both investor and issuer benefits.”
For more information or to download a copy of the written testimony, contact Entrex via e-mail or visit the Entrex website.
About Entrex
Entrex is the place to find, research, track, manage and trade securities for entrepreneurial companies. Through the TIGRcub™ security structure, Investors and Issuers are brought together in a Capital Market System that serves both private and public companies. TIGRcubs™ provide Investors with monthly income, liquidity and investment returns that are not based on exit events, or exposed to the volatility of the equity capital markets—all while providing Issuers a non-dilutive capital solution with risk-adjusted pricing simulating either debt or equity structures. Visit the Entrex website
About Arctaris Capital Partners LLC
Arctaris provides expansion capital and related corporate financial services to private and publicly held companies looking to utilize the TIGRcub™ security. For more information about the TIGRcub™ and its applications, please contact David Kozhuk at Arctaris Capital, or call 617.535.9928.
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