TIGRCubs and Royalty Finance
Innovative Equity is a registered broker of the Entrex Exchange – a securities trading platform that focuses on providing capital to mid-tier mining companies globally and industrials companies in North America.
Companies seeking capital issue TIGRCubs with a promise to pay a percentage of their revenue for a fixed term of 5-10 years – similiar to paying a royalties.
TIGRCub issuance are an attractive flexible instrument which offer issuers the following benefits:
- No interest payments
- No requirement for a stock placement, therefore no dilution of existing shareholders
- Access to capital even during bearish equity markets
- They are unsecured instruments. No requirement for burdensome covenants
- A competitive 9-12% IRR cost of capital
To qualify for TIGRCubs issuance, companies must have the fundamentals to support a $25m issue and have a positive cashflow
JUST CLICK ON THIS LINK FOR A VIDEO PREVIEW
The Entrex market raised US$1.3bn from 41 issuers in 2012. Click on the link below to see some of the Success Stories