TIGRcub Serves Effective Fund Manager In Capital Raising

In the paper, titled "Funding Companies in a Deleveraged Economy A New Corporate Finance Solution for Companies and Investors," Andrew D. Clapp, Managing Partner of Waltham, Mass., based Arctaris Capital Partners, LLC, explains that, TIGRcubs(TM), an acronym for Top line

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In the paper, titled “Funding Companies in a Deleveraged Economy: A New Corporate Finance Solution for Companies and Investors,” Andrew D. Clapp, Managing Partner of Waltham, Mass., based Arctaris Capital Partners, LLC, explains that, TIGRcubs(TM), 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(TM) may appear similar to financings known as royalty-based transactions; however, TIGRcub(TM) securities differ materially from royalty contracts, in both form and substance, when legal and accounting respects are considered.”

The TIGRcub(TM) 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(TM) financing and also provides or raises the capital as needed.

The paper describes other advantages of TIGRcub(TM) financing and the key characteristics of companies that may be a fit for TIGRcubs(TM).

TIGRcubs(TM) were developed by, and are being licensed by Chicago-based Entrex Inc. They manage the TIGRcub(TM) issuance process and post-issuance servicing of TIGRcub(TM) contracts.

“I’m pleased that fund managers and professionals like Clapp are applying the benefits of the TIGRcub(TM) structure and promoting the use of the security,” says Stephen H. Watkins, CEO, Entrex.

“Clapp’s white paper is a good introduction to the TIGRcub(TM) platform as he discusses various applications, such as growth capital or bridge financing, and both investor and issuer benefits.”

L.D.

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