Public Entity Provides Private Companies Liquidity Through the 'Entrex Index Fund'
January 03 2007 - 11:52AM
PR Newswire (US)
CHICAGO, Jan. 3 /PRNewswire/ -- EMEC, a publicly traded Business
Development Corporation (BDC), agreed to become the first exclusive
North American Entrex Index Fund. With plans to invest up to one
million dollars, on a formulaic basis, into 200 private, fast
growth and entrepreneurial companies in 2007, the California based
EMEC expects to quickly exceed US$100M in value. The relationship
between Entrex and EMEC (OTC:EMEC) (BULLETIN BOARD: EMEC) is unique
in the sense that the fund will be comprised of equity shares in
only vetted high-performing companies, representing diverse
industry sectors, and investors are assured liquidity. EMEC will
purchase stock from existing shareholders or newly distributed
capital stock from each company. The percentage of ownership will
vary based on the amount of cash a company is seeking from the
transaction. Companies hoping for a place in the EMEC Index Fund
will be required to submit to a corporate validation and valuation
process, a proprietary methodology established by Entrex, Inc., in
order to determine that they in fact warrant the label "Entrex
Ensured." More information about this determination can be found at
the company's website http://www.entrex.net/ . Entrex CEO, Stephen
H. Watkins explains, "The debut of this fund helps us provide
answers to broker dealers and investment advisors about how
alternative investments can provide liquidity -- in this case it's
a double plus as both investors and company shareholders get it.
We're proud of this. It's a really interesting value proposition
for both company owners and alternative investors. Based on over a
year's worth of research by the Private Company Index (PCI) [
http://www.privatecompanyindex.com/ ], carefully selected firms
from the private sector could be expected to see a 50% growth over
the course of one calendar year -- as PCI companies proved in
2005-06." Soon, Entrex and EMEC plan to take this benefit directly
to the people by providing investors a way to support companies in
the regions where they live and work. A series of spin-off funds,
based around US Congressional districts, will provide much needed
growth capital to local companies, without compromising the Entrex
vetting process that makes the North American fund valuable.
Watkins sums it up by stating, "The fund aims to provide investment
appreciation for all as well as regional employment growth and
economic gain ... who could ask for more?" About Entrex: Entrex (
http://www.entrex.net/ ) 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. Companies that adhere to
Entrex's methodologies and disciplines gain credibility and
exposure to the investor community while gaining liquidity options
beyond the traditional route of IPOs, mergers and/or acquisitions.
Through its innovative approach and process, Entrex is creating a
whole new path to capital for entrepreneurial businesses. Contact:
John Ferguson Ferguson Advertising Direct (260) 426-4401 Available
Topic Expert(s): For information on the listed expert(s), click
appropriate link. Stephen H. Watkins
http://profnet.prnewswire.com/Subscriber/ExpertProfile.aspx?ei=50162
DATASOURCE: Entrex, Inc. CONTACT: John Ferguson of Ferguson
Advertising, Direct +1-260-426-4401, or Web site:
http://www.entrex.net/ http://www.privatecompanyindex.com/
Copyright