Entrex Issues Response to Proposed SEC Rule to Streamline Regulation D Filing
Chicago, IL – July 30, 2007 – Entrex, Inc. submitted a formal response to the SEC today, weighing in on parts of a proposed rule that allows for electronic filing and simplification of Form D. The SEC language (Federal Register file number S7-12-07) describes their plan to “simplify and restructure” Form D as well as “update and revise its information requirements.”
Entrex Founder and CEO, Stephen H. Watkins, explains his company’s position, “We appreciate their efforts to ease the complexity of this burden for companies—after all, in this new found free time they can actually work on their businesses. Right now, SEC reporting requirements involve hours of labor that, single-handedly, support entire sectors of the legal and accounting industries. Existing regulations and oversight structures offer little value to companies and the equivalent toward investor protection.”
Entrex proposes that time and energy spent repairing existing bureaucracy neither best serves American investors nor ensures our country’s ranking as a global capital marketplace leader. Quite simply, they feel that the minutia of regulation restructuring is not the most useful way the SEC could be flexing its considerable muscle.
Mr. Watkins states, “It is time the SEC understood that they should embrace the private companies that bring economic and employment growth to our nation—versus shunning them. Current data reflects about 20,000 public companies in the US equity markets with fewer than 5000 of those considered actively traded. Yet there are nearly 24 million private firms in the US which have no clear path to qualify themselves for or access to capital funding. They are forced to dwell in the murky waters of venture capital and other unregulated private equity investments.”
Specifically, Entrex asks the SEC to “embrace a sub-public market that, by design, is a necessary means for expanding capital formation and opportunity to American private companies.” They continue to explain that growing private companies, not ready for the public market, have no structured marketplace to offer interested capital an opportunity to invest. Thus, all financial transactions around private entities are neither regulated nor scrutinized—which leads to investors being defrauded in a variety of ways that can not be readily challenged legally.
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.
These press releases and announcements are provided as a service to the press and others for historical research purposes only. The information contained in these press releases is accurate only as of the date of the release and the Company undertakes no obligation to update the materials in this section after the release date.