0001733775-18-000001.txt : 20180308
0001733775-18-000001.hdr.sgml : 20180308
20180308130948
ACCESSION NUMBER: 0001733775-18-000001
CONFORMED SUBMISSION TYPE: 1-A
PUBLIC DOCUMENT COUNT: 2
FILED AS OF DATE: 20180308
FILER:
COMPANY DATA:
COMPANY CONFORMED NAME: EHCo LLC
CENTRAL INDEX KEY: 0001733775
IRS NUMBER: 000000000
STATE OF INCORPORATION: FL
FISCAL YEAR END: 1231
FILING VALUES:
FORM TYPE: 1-A
SEC ACT: 1933 Act
SEC FILE NUMBER: 024-10815
FILM NUMBER: 18675878
BUSINESS ADDRESS:
STREET 1: 150 E PALMETTO PARK ROAD, SUITE 800
CITY: BOCA RATON
STATE: FL
ZIP: 33432
BUSINESS PHONE: 561-465-7580
MAIL ADDRESS:
STREET 1: 150 E PALMETTO PARK ROAD, SUITE 800
CITY: BOCA RATON
STATE: FL
ZIP: 33432
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150 E Palmetto Park Road, Suite 800
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561-465-7580
Stephen Watkins
Other
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PART II AND III
2
partiiniii.txt
PART II
OFFERING CIRCULAR
Entrex Holding Company (?EHCo, LLC?)
EHCo, LLC
150 E Palmetto Park Road
Suite 800
Boca Raton, FL 33432
Best Efforts Offering of up to 400,000 Preferred Equity
Securities (?TIGRtoken?)
Minimum Purchase: 1 Unit ($10)
This prospectus relates to the offering and sale of up to Four
Hundred Thousand (400,000) Preferred Equity TIGRtoken Securities
of the Company for an aggregate, maximum gross dollar offering
of Four Million ($4,000,000) Dollars (the ?Offering?). The
Offering is being made pursuant to Tier 1 of Regulation A,
promulgated under the Securities Act of 1933. Each Preferred
Equity Security will be offered at Ten Dollars ($10) per unit.
There is a minimum purchase amount of One Preferred Equity
TIGRtoken Security, at $10 per unit for an aggregate purchase
price of Ten ($10) Dollars.
Investing in this offering involves high degree of risk, and you
should not invest unless you can afford to lose your entire
investment: see ?Risk Factors?. This offering circular relates
to the offer and sale or other disposition of up to Four Hundred
Thousand (400,000) Preferred Equity TIGRtokens, at Ten Dollars
($10) per unit.
This is our offering, and no public market currently exists for
our Preferred Equity securities. The proposed sale will begin as
soon as practicable after this Offering Circular has been
qualified by the Securities and Exchange Commission (the ?SEC?)
and the relevant state regulators, as necessary and will
terminate on the sooner of the sale of the maximum number of
shares being sold, twelve months from the effective date of this
Offering Statement or the decision by Company management to deem
the offering closed. The shares offered hereby are offered on a
?best efforts? basis, and there is no minimum offering.
We have made no arrangements to place subscription proceeds or
funds in an escrow, trust or similar account, which means that
the proceeds or funds from the sale of securities will be
immediately available to us for use in our operations and once
received and accepted are irrevocable. See ?Plan of
Distribution? for a description of our Preferred Equity
securities offering.
THE UNITED STATES SECURITIES AND EXCHANGE COMMISSION DOES NOT
PASS UPON THE MERITS OF OR GIVE ITS APPROVAL TO ANY SECURITIES
OFFERED OR THE TERMS OF THE OFFERING, NOR DOES IT PASS UPON THE
ACCURACY OR COMPLETENESS OF ANY OFFERING CIRCULAR OR OTHER
SOLICITATION MATERIALS. THESE SECURITIES ARE OFFERED PURSUANT TO
AN EXEMPTION FROM REGISTRATION WITH THE COMMISSION; HOWEVER, THE
COMMISSION HAS NOT MADE AN INDEPENDENT DETERMINATION THAT THE
SECURITIES OFFERED ARE EXEMPT FROM REGISTRATION.
THE PREFERRED EQUITY SECURITIES HAVE NOT BEEN REGISTERED UNDER
THE SECURITIES ACT OF 1933, AS AMENDED (THE ?SECURITIES ACT?),
OR APPLICABLE STATE SECURITIES LAWS, AND ARE BEING OFFERED AND
SOLD IN RELIANCE ON EXEMPTIONS FROM THE REGISTRATION
REQUIREMENTS OF THESE LAWS. THE PREFERRED EQUITY SECURITIES HAVE
NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND EXCHANGE
COMMISSION OR ANY STATE REGULATORY AUTHORITY NOR HAS THE
COMMISSION OR ANY STATE REGULATORY AUTHORITY PASSED UPON OR
ENDORSED THE MERITS OF THE OFFERING OR THE ACCURACY OR ADEQUACY
OF THIS OFFERING CIRCULAR. ANY REPRESENTATION TO THE CONTRARY IS
UNLAWFUL.
We are following the ?Offering Circular? format of disclosure
under Regulation A.
The date of this Preliminary Offering Circular is March 6, 2018
FORWARD LOOKING STATEMENTS
THIS OFFERING CIRCULAR MAY CONTAIN FORWARD-LOOKING STATEMENTS
AND INFORMATION RELATING TO, AMONG OTHER THINGS, THE COMPANY, ITS
BUSINESS PLAN AND STRATEGY, AND ITS INDUSTRY. THESE FORWARD-LOOKING
STATEMENTS ARE BASED ON THE BELIEFS OF, ASSUMPTIONS MADE BY, AND
INFORMATION CURRENTLY AVAILABLE TO THE COMPANY?S MANAGEMENT.
WHEN USED IN THE OFFERING MATERIALS, THE WORDS ?ESTIMATE,? ?PROJECT,?
?BELIEVE,? ?ANTICIPATE,? ?INTEND,? ?EXPECT? AND SIMILAR EXPRESSIONS ARE
INTENDED TO IDENTIFY FORWARD-LOOKING STATEMENTS. THESE STATEMENTS
REFLECT MANAGEMENT?S CURRENT VIEWS WITH RESPECT TO FUTURE EVENTS
AND ARE SUBJECT TO RISKS AND UNCERTAINTIES THAT COULD CAUSE THE
COMPANY?S ACTUAL RESULTS TO DIFFER MATERIALLY FROM THOSE
CONTAINED IN THE FORWARD-LOOKING STATEMENTS. INVESTORS ARE
CAUTIONED NOT TO PLACE UNDUE RELIANCE ON THESE FORWARD-LOOKING
STATEMENTS, WHICH SPEAK ONLY AS OF THE DATE ON WHICH THEY ARE MADE
TABLE OF CONTENTS
1. SUMMARY OF INFORMATION IN OFFERING CIRCULAR?????????1
2. RISK FACTORS????????????????????????????????????????9
3. DILUTION???????????????????????????????????????????14
4. PLAN OF DISTRIBUTION???????????????????????????????15
5. USE OF PROCEEDS TO ISSUER??????????????????????????16
6. DIRECTORS, EXECUTIVE OFFICERSAND CONTROL
PERSONS????18
7. PROJECTED FINANCIAL STATEMENTS????????????????20
8. SIGNATURE PAGE??????????????????????????????????
?????????????22
1.
SUMMARY OF INFORMATION IN OFFERING CIRCULAR
As used in this prospectus, references to the ?Company,?
?company?, ?we,? ?our?, ?us?, ?Entrex Holding Company? or
?Company Name? refer to EHCo, LLC. unless the context otherwise
indicated.
You should carefully read all information in the prospectus,
including the financial statements and their explanatory notes,
under the Financial Statements prior to making an investment
decision.
The Company
Organization:
EHCo, LLC was incorporated under
the laws of the State of Florida
on August 1, 2017. Our principal
office is located at 150 E
Palmetto Park Road, Suite 800,
Boca Raton FL, 33432.
Capitalization:
$100
Management:
Our Chief Executive Officer &
Chairman is Stephen H. Watkins.
Our Vice Chairman is Rick Rochon.
Our other Officers initially
include Alexander Adami and Erin
Flaherty both who assist in the
operations of the Company.
Controlling
Shareholders:
Stephen H. Watkins is the
controlling shareholder
Our
Business
Entrex was founded in 2001 to create a capital market system for
entrepreneurial companies (?Entrex? is short for ?entrepreneurial
exchange?).
Since that time, Founder & CEO Stephen Watkins has assembled both
a team and a family of companies with leading-edge technology,
using the IBM technology stack, to serve the needs of all market
participants: companies, investors and intermediaries. As a
final step in this evolution the Entrex Holding Company (?EHCo?
or ?Entrex?)* was established to help drive synergies among these
underlying companies, and to create a comprehensive market
system, similar to the infrastructures of NASDAQ or NYSE, yet to
help smaller companies access capital while providing control,
compliance, and transparency to all market participants.
Description
of
Operations:
Entrex focuses on cash-flowing U.S. companies with $5-250 million
of annual revenue: these are typically companies with capital
needs beyond the capability of friends and family, but below the
interests of Wall Street.
We have found that this sector presents unique challenges to
investors and companies that constrain the issuance of
traditional equity (?stock?) particularly issues around
valuation, liquidity and governance rights.
We believe Investors and Issuers are served well through our
innovative solution: our patented and tradable revenue enhanced
debt security, trademarked a TIGRcub, or ?top line income
generation rights certificate.?
Entrex licenses its TIGRcub and Initial TIGRcub Offering process
to issuers which allows issuers to raise funds through a
syndicate of regulated Broker Dealers who selling TIGRcubs to
their Investors.
Investors buy the TIGRcub which typically provides monthly yield
enhanced through the monthly distribution of a small slice of
revenue. This provides the investor with the benefits of
growth, while providing companies non-dilutive access to capital.
Trade and TIPs, TIGRcub Interest Payments, are managed through
the Entrex eChain LLC. This company manages the trades to affect
a transparent transaction process for all market constituents and
the regulators --- while having the ability to push transactional
information, Trade, Anti Money Laundering, Know Your Customer and
Suitability ?tokens? onto the Blockchain creating an immutable
record on the ledger.
The intent of the eChain is to provide market data constituents,
like Dow, Bloomberg and others access to the historical
performance and terms of the TIGRcubs which then allow their
tools to create Net Present Values (NPVs) creating the
opportunity for bid and offers, representing a premium or
discount to par for secondary buyers.
Once TIGRcubs are issued and sold, Entrex?s technology platform
can then provide investors a ?capital market system? to find,
research, track, manage and trade the TIGRcub.
Historical
Operations:
In 2017 EHCo LLC managed and facilitated over 200 TIGRcub trades
on a primary basis via our eChain technologies. Regulators,
today, use our eChain as the domesticated source for the trades.
However we have pushed each trade to the Blockchain which creates
an immutable record in a manner that may, or may not, represent
the final regulated blockchain methodology. When the regulators
establish such a platform, or approve others, Entrex technology
anticipates the ability of using an API (Application Programming
Interface) to provide both a domesticated ledger and a Blockchain
representation of the TIGRcub trade and ownership.
As our market grows we envision Entrex as the place investors can
find, research, track, manage and trade TIGRcubs: creating the
envisioned ?capital market system for entrepreneurial companies.?
Current
Operations:
TIGRcub licensees (issuing companies) are originated by a
nationwide network of over 3,900 intermediary contacts. These
relationships have been developed through past marketing at
venues including regional investment banking shows and regional
?advisor? oriented forums.
Our ITOS (Initial TIGRcub Offering System) technology platform
provides intermediaries a co-branded marketing and origination
platform which aligns the Intermediaries as ?Entrex Market
Members?.
Our Entrex Market Members, through our ITOS platform, provides
Intermediaries the ability to enter various financial matrix of
an issuer which develops an online co-branded TIGRcub
Illustration for their clients ? managing the sales process and
providing consistent messaging about what and how the Initial
TIGRcub Offering process could work for an Issuer ? all helping
align Entrex with the Intermediators or ?Entrex Market Members?
Once an illustration is accepted by an Issuer and a license
executed the Issuer then goes through an underwriting process,
using an ITOS ?DealBox? which manages information flow between
the issuer and the Origination Entrex Market Member. The
information required by ITOS is managed showing missing documents
needed for Brokers and Investors to make informed decisions;
while proving out the various financial matrix to the point the
initial illustration becomes and market ready ?Initial TIGRcub
Offering?.
With an Initial TIGRcub Offering created it is then presented to
regulated Placement Brokers through an ITOS ?BrokerBox?. The
BrokerBox provides Brokers, and their Compliance team, the
required regulatory and financial information about the Issuer to
determine if the Initial TIGRcub offering could be appropriate
for their investor base.
Once accepted by the Placement Brokers an ?Initial TIGRcub
Offering Circular? or teaser is created for the Placement team to
distribute. Interested parties can then review an ITOS
?DealBox? which is a subset of information to assist an investor
with the information to provide an informed investment decision.
Once a ?buy? order is executed against the offering the order is
processed through ITOS to our Entrex eChain which manages both
the trade and the monthly TIGRcub Interest Payments through and
to secondary trades.
The Entrex technology platform manages a private securities
process from initial Sales, Origination, Offering, Placement,
Trade and TIPs creating an end to end life-cycle within our
cohesive IBM based technology platform.
Acquisitions
of
Companies:
EHCo LLC anticipates the consolidation of various companies as
represented and anticipates various other companies economic
participation as we build operations. Today the following
companies are wholly owned entities of Entrex Holding Company
(EHCo, LLC):
Entrex eChain LLC:
Operations and Management of TIGRcub Trades and TIPs.
Entrex Market Index LLC:
Composite Index of the Entrex Marketplace.
Entrex Capital Market LLC:
Operations of Regulated Broker/Dealer.
Growth
Strategy:
The Company?s growth is anticipated through further development
of the Entrex Market Member platform. This includes various
methodologies to build and align with the Originating Members
offering further technology enhancements and cohesive marketing
alignment. Further we anticipate building the Entrex Placement
Syndicate Members to enhanced the volume of investors learning
about the various TIGRcub investment opportunities.
Together by scaling origination and placement ?members? we
anticipate over time, similar to public markets, Entrex should
become known to investors as a market for yield similar to how
NASDAQ is known for Technology Companies and NYSE for Blue Chips.
The timing and commencement of our growth plans may be influenced
by the success of this capital offering. We may not raise
sufficient proceeds through this offering in order to fully
execute our business plans.
The Offering
Securities
Offered:
400,000 Preferred Equity TIGRtokens at $10 per unit.
Entrex?s preferred equity TIGRtokens will be offered at $10 each
with 1% GAAP Gross Revenues (?Revenue Distributions?) being
distributed equally to the 400,000 TIGRtoken holders.
Distributions will be decided and authorized by the Board of
Directors on a monthly basis.
Revenue participation will be paid on the 22nd of each month, in
arrears or the next business day via ACH for the TIGRtoken
Certificate Holder of Record on the last day of the previous
month.
Any distribution less than $1.00 per Certificate Holder will be
accrued in escrow until and when the accrued distribution value
is greater than $1.00.
Any sale of the securities during any escrow period will be
distributed to the holder of record based on the last day of the
previous month. Any escrows will be visible on the Entrex eChain.
1.
Termination
of the
Offering:
The offering will commence as soon as practicable after this
Offering Circular has been qualified by the Securities and
Exchange Commission (the ?SEC?) and the relevant state
regulators, as necessary and will terminate on the sooner of the
sale of the maximum number of Preferred Equity securities being
sold, twelve months from the effective date of this Offering
Statement or the decision by Company management to deem the
offering closed
Offering
Cost:
We estimate our total offering estimated offering, selling and
operational expenses of approximately $400,000 of the total
$4,000,000 offering amount.
2.
RISK FACTORS
Investing in our securities involves risk. In evaluating the Company
and an investment in the Preferred Equity TIGRtokens careful
consideration should be given to the following risk factors, in
addition to the other information included in this Offering circular.
Each of these risk factors could materially adversely affect EHCo?s
business, operating results or financial condition, as well as
adversely affect the value of an investment in our securities.
The following is a summary of the most significant factors that make
this offering speculative or substantially risky. The company is
still subject to all the same risks that all companies in its
industry, and all companies in the economy, are exposed to. These
include risks relating to economic downturns, political and economic
events and technological developments (such as cyber-security).
Additionally, early-stage companies are inherently riskier than more
developed companies. You should consider general risks as well as
specific risks when deciding whether to invest.
Risks Related to the Company
The vision and mission of Entrex has been a development stage
business for many years managing the business and regulatory
challenges of the market sector.
The Company has limited capitalization and a lack of working capital
and as a result is dependent on raising funds to grow and expand its
business. The Company lacks sufficient working capital in order to
execute its business plan. The ability of the Company to move forward
with its objective/s is therefore highly dependent upon the success
of the offering described herein. Should we fail to obtain sufficient
working capital through this offering we may be forced to abandon our
business plan.
Because we have a limited history of operations we may not be able to
successfully implement our business plan.
We cannot assure you that our intended activities or plan of
operation will be successful or result in revenue or profit to us and
any failure to implement our business plan may have a material
adverse effect on the business of the Company.
We are dependent on the sale of our securities to fund our operations
and will remain so until we generate sufficient revenues to pay for
our operating costs. Our officers and directors have made no written
commitments with respect to providing a source of liquidity in the
form of cash advances, loans and/or financial guarantees. There can
be no guarantee that we will be able to successfully sell our
securities. Such liquidity and solvency problems may force the
Company to cease operations if additional financing is not available.
No known alternative resources of funds are available in the event we
do not generate sufficient funds from operations.
We rely on licensed intellectual properties purchased and licensed
under agreement from related parties. If these agreements are not
fully adhered and our license revoked our operations could be
severely affected.
Accordingly, our operations are subject to the risks inherent in the
establishment of a new business enterprise, including access to
capital, licensed technologies, successful implementation of our
business plan and limited revenue from operations.
Risks Relating to Our Business
We will be dependent upon key administrative personnel of EHCo, LLC
for our future success, particularly Stephen H. Watkins. If we lose
this member of the EHCo management team, our ability to implement our
business strategy could be significantly harmed.
There is currently no active trading market for our securities.
Our ability to grow will depend on our ability to raise capital.
Our financial condition and results of operations will depend on our
ability to manage our future growth effectively.
The EHCo, LLC is a company with limited operating history which has
agreements to purchase companies. As such, it is subject to the
business risks and uncertainties associated with any new business
enterprise, including the lack of experience in managing or operating
a business of this type.
Accomplishing this result on a cost-effective basis is largely a
function of our management personnel?s structuring of administrative
duties, their ability to provide competent, attentive and
efficient services to us, and our access to financing on
acceptable terms.
We will operate in a highly competitive market for investment
opportunities.
We compete for investors with traditional investment vehicles
(including private equity funds and mezzanine funds), other
equity and non-equity based investment funds, investment banks
and other sources of financing, including traditional financial
services companies such as commercial banks and specialty
finance companies. Many of our competitors, although in a more
traditional investment space, are substantially larger than us
and have considerably greater financial, technical and
marketing resources than we do.
Our quarterly and annual operating results are subject to
fluctuation as a result of the nature of our business, and if
we fail to achieve our objectives, the value of our securities
may decline.
We could experience fluctuations in our quarterly and annual
operating results due to a number of factors, some of which are
beyond our control, including the number of investors, the
number of companies that agree to issue TIGRcubs, the degree to
which we encounter competition in our markets and general
economic conditions. As a result of these factors, results for
any period should not be relied upon as being indicative of
performance in future periods.
There are significant potential conflicts of interest which
could impact our returns:
Our management team (and any that may be retained in the
future), and the future members of a EHCo, LLC may serve as
officers, directors or principals of entities that operate in
the same or a related line of business as we do or
organizations managed by affiliates of the EHCo, LLC that may
be formed in the future. Accordingly, if this occurs, they may
have obligations to investors in those entities, the
fulfillment of which might not be in the best interests of our
investors or us.
Operational and/or Ownership conflicts of interest:
Our management team (and any that may be retained in the
future), and the future members of the EHCo, LLC may be owners
or principals of entities that the EHCo, LLC may purchase.
Accordingly, if this occurs, they may have obligations to
investors in those entities which may not be in the best
interest of the Preferred Equity (TIGRtoken) holders of the
EHCo, LLC.
Our Management may choose to, exclusively at their option, to
sell or reclassify one or more class/es of securities which
could convey rights and privileges to their owners.
The EHCo, LLC management has the right to sell or convert any
of the Company?s securities into various securities of any
other company if deemed appropriate, exclusively at the option
of the management, into a private or publicly listed Company.
Our Management may change our objectives, operating policies
and strategies without prior notice or any stockholder
approval.
Our management has the authority to modify or waive certain of
our operating policies and strategies without prior notice and
without investor approval. However, absent investor approval,
we may not change the nature of our business so as to cease to
exist unless sold or purchased at the exclusive option of
management. We cannot predict the effect any changes to our
current operating policies or strategies would have on the
business model, operating results and returns to investors.
Nevertheless, the effects may adversely affect our business and
impact our ability to make distributions.
Changes in laws or regulations governing our operations may
adversely affect our business.
We are subject to regulation by laws at the local, state and
federal levels. These laws and regulations, as well as their
interpretation, may be changed from time to time. Any change in
these laws or regulations could have a material adverse effect
on our business.
Because the EHCo, LLC may be publicly traded, there will be
uncertainty regarding our value.
We have arbitrarily established a price of our securities based
on our perception of comparables in the industry. This
valuation may fluctuate significantly and could have no
relevance to actual results of the EHCo, LLC.
EHCo?s purchase of related companies:
At the discretion of management; we may or may not elect to
purchase related companies which may or may not have conflicts
of interest for the Company or management using proceeds of
this offering or establishing debt or other securities which
may have a negative effect on to TIGRtoken holders of this
offering.
Purchase of previously issued securities of related companies:
At the discretion of management; we may or may not purchase or
convert securities of related companies owned wholly or in
part. These TIGRcubs may be purchased at a premium or a
discount, and/or purchased through the distribution of
Preferred Equity (TIGRtokens) with rights and warranties
similar to this offering and at the sole discretion of
management which we may or may not have conflicts of interest
in the company, management or price of such securities of said
issuer.
EHCo, LLC limited operational experience:
EHCo, LLC, the holding company, has had limited operations and
is consolidating various companies which may, or may not, be
sufficient for the business and plans outlined.
If management fails to grow as planned the operational cash-
flows could limit distributions to TIGRtoken holders or
significantly affect the operations of the enterprise. If
insufficient funds are not available for distribution,
shareholders may not receive the monthly 1% distribution of the
company?s top line revenues decided wholly at the discretion of
the Board of Directors.
3.
DILUTION
We are offering Preferred Equity Securities (TIGRtokens), which
will distribute 1% of GAAP Gross Revenue earned by the EHCo,
LLC to investors on a monthly basis at the discretion of
management.
Pursuant to the section labeled ?Warrants/Options? we may, or
may not, provide Preferred Equity securities (TIGRtokens, or
other securities, to members of management, employees or
partners which may or may not have a dilutive effect to
Preferred Equity securities (TIGRtoken) returns.
Future offerings, if needed, may dilute the Preferred Equity
Securities (TIGRtokens) holdings. These potential offerings
may dilute the holdings of this offering?s Preferred Equity
(TIGRtokens).
4.
PLAN OF DISTRIBUTION
We are offering a maximum of 400,000 Preferred Equity
Securities on a no minimum, ?best efforts? basis. The offering
will terminate upon the earlier to occur of: (i) the sale of
all Preferred Equity TIGRtokens being offered, or (ii) 365 days
after this Offering Circular is declared effective by the
Securities and Exchange Commission or (iii) or the decision by
Company management to deem the offering closed.
Our Preferred Equity TIGRtokens are not currently listed on any
national exchange or qualified for trading on any electronic
quotation system. No securities are being sold for the account
of security holders; all net proceeds of this offering will go
to the Company.
Warrants/options:
As of the date of this prospectus, there are no outstanding
warrants to purchase our securities. We may however, pursuant
to the direction of management, issue warrants and/or options
to individuals and/or entities in the future for the
anticipated benefit of the Preferred Equity TIGRtoken holders.
State Securities Laws:
Under the securities laws of some states, the Preferred Equity
(TIGRtokens) may be sold in such states only through registered
or licensed brokers or dealers. In addition, in some states the
TIGRtokens may not be sold unless the TIGRtokens have been
registered or qualified for sale in the state or an exemption
from registration or qualification is available and is complied
with.
?
5.
USE OF PROCEEDS TO ISSUER
We estimate that the net proceeds from the sale of the 400,000
$10 TIGRtokens in this Offering will be approximately
$3,600,000, after deducting the estimated offering, selling and
operational expenses of approximately $400,000.
Use of funds shall be used in the following manner:
Purchase of the patent(s): $1.2 million.
Purchase of a FINRA registered broker, Conversion and Operations
expenses: $250,000.
Appoint a ?placement? business development professional to build and
manage the Entrex network of placement agents for the ITO process:
$125,000 plus $125,000 travel.
Appoint an ?origination? business development professional to build
and manage the Entrex network of originators: $125,000 plus $125,000
travel.
Marketing to increase brand awareness and increase issuer inquiries:
$180,000.
Appoint a liaison in Washington DC to assist in managing a positive
market position with lawmakers and regulators (Congress, SEC, FINRA,
et al.) for Entrex as a market and blockchain capital market for
entrepreneurial companies: $200,000.
Expand awareness of the Entrex Market Index (?Index?), the composite
index of the Entrex Capital Market with media channels. The Index
can invest up to 10% into each Issuers TIGRcub Offering creating a
diversified basket of investment like the NASDAQ composite:
$500,000.
Continue to enhance Entrex?s ITOS and eChain technologies: $120,000
plus $60,000 hardware, server and IBM consulting.
Other sales and marketing costs associated with placement,
origination and operations of the enterprise: $340,000.
Operations staff to manage the growth of the enterprise: 5 people at
$50,000 each, or $250,000.
6.
DIRECTORS, EXECUTIVE OFFICERS AND CONTROL PERSONS
Our executive officers and directors as of the date of this
offering are as follows:
Stephen H. Watkins: is Chairman of the Board and is the
founding Chairman and CEO of Entrex. Stephen is an experienced
entrepreneur founding a series of successful information and
business services companies; two of which grew to billion
dollar market cap companies (3Clix - SMS/Assist). Stephen
authored the book ?Capital Can?t Fund What It Can?t Find?. In
the past he wrote a syndicated bi-monthly finance column?read
by over eight million national readers at its peak.
Richard Rochon: Mr. Rochon is the Vice Chairman of the Board
and CEO and Chairman of Royal Palm Capital Partners. Mr.
Rochon has extensive experience as an investor, shareholder,
director and officer of various public and private companies
throughout his career and has been involved in numerous
acquisitions, divestitures, spin-offs, initial public
offerings, secondary offerings and other corporate financings
and transactions.
Prior to forming RPCP, Mr. Rochon served for 14 years (1987-
2002) as President of Huizenga Holdings, Inc., a management and
holding company owned by H. Wayne Huizenga.
Mr. Rochon?s responsibilities during his career have included
the following: Director, Century Business Services (NYSE: CBZ;
1996 - 2014); Director (Chairman), Sunair Services Corporation
(AMEX: SNR; 2004 ? 2009); Director (Chairman and Chief
Executive Officer), Devcon International Corporation (2004 ?
2009); Director (Chairman) Equity Media Holdings Corporation
(2008 ? 2009); Director (Chairman and Chief Executive Officer)
? Coconut Palm Acquisition Corporation (2005-2007); Director,
Bancshares of Florida (NASDAQ: BOFL - 2002-2006), a full-
service commercial bank; Director (Vice Chairman) (November
1996 to December 2004) and President (March 1998 to January
2002) of Boca Resorts, Inc. Director, Miami Dolphins (National
Football League) (1994-2002); Director AutoNation, Inc. (NYSE:
AN; September 1995-May 1997); Director, Florida Marlins (Major
League Baseball) (September 1990 to January 1999); Director,
Florida Panthers (National Hockey League) (December 1992 to
November 1996); Director, Barnett Bank of Broward County (6
Years); Director, SportsChannel Florida (March 1996 to January
2000). Mr. Rochon has also served as a director of the
following privately held operating companies, including: Lord
Colony Cleaners, Tru-Green Lawn Spray, R.W. Collins Pest
Control Inc., Aqua Pure Bottled Water, Inc., Leisure Management
International, Classic Sports Network, SunCoast Helicopters,
Inc., Sparkle and Life General Security.
In addition, Mr. Rochon has been involved in real estate
investments of hotels, land and marinas as well as professional
sports stadiums (Joe Robbie Stadium) and new stadium
construction (National Car Rental Center). Specifically, he has
served as a director of Pier 66 Hotel and Marina (Fort
Lauderdale), Bahia Mar Hotel and Marina (Fort Lauderdale), Las
Olas Land Corporation, Sunrise Land Corporation and Homestead
Motorsports Complex.
Prior to joining the Huizenga Holdings organization in 1985
(where he served as Treasurer from 1985-1987 prior to being
named President), Mr. Rochon was employed as a certified public
accountant by the public accounting firm of Coopers & Lybrand
from 1979 to 1985.
Compensation of Directors:
The independent directors will receive an annual retainer fee
and reimbursement of reasonable out-of-pocket expenses incurred
in connection with attending each board meeting. The
independent directors will receive compensation in connection
with each committee meeting of the Board of Directors that they
attend, plus reimbursement of reasonable out-of-pocket expenses
incurred in connection with attending each committee meeting
not held concurrently with a board meeting. No compensation is
expected to be paid to directors until this offering is made
effective.
Indemnification Agreements:
We shall enter into indemnification agreements with our
directors. The indemnification agreements are intended to
provide our directors the maximum indemnification permitted
under law. Each indemnification agreement provides that EHCo
shall indemnify the director who is a party to the agreement
(an ?Indemnitee?), including the advancement of legal expenses,
if, by reason of his or her corporate status, the Indemnitee
is, or is threatened to be made a party to or a witness in any
threatened, pending, or completed proceeding.
Significant Employees:
As of the date of this prospectus, Stephen H. Watkins is the
key personnel associated directly with the EHCo, LLC. Other
staff members and/or entities will be involved in EHCo, LLC as
required. Various employment agreements and/or contracts may
be made with key personnel which will regulate the manner of
compensation and the potential options and/or warrants of
various securities of the enterprise as provided in the
employment agreements.
Family Relationships:
There are no family relationships among our directors or
officers.
Involvement in Certain Legal Proceedings:
None of our directors, executive officers or control persons is
known to have been involved in any of the following events
during the past five years:
1.
Bankruptcy petition filed by or against any business of
which such person was a general partner or executive officer
either at the time of the bankruptcy or within two years
prior to that time;
2.
Any conviction in a criminal proceeding or being subject to
a pending criminal proceeding (excluding traffic violations
and other minor offences);
3.
Being subject to any order, judgment, or decree, not
subsequently reversed, suspended or vacated, of any court of
competent jurisdiction, permanently or temporarily
enjoining, barring, suspending or otherwise limiting his
involvement in any type of business, securities or banking
activities; or
4.
Being found by a court of competent jurisdiction (in a civil
action), the Commission or the Commodity Futures Trading
Commission to have violated a federal or state securities or
commodities law, and the judgment or decision has not been
reversed, suspended, or vacated.
Changes in Control:
We are unaware of any contract, or other arrangement or
provision of our Articles or by-laws, the operation of which
may at a subsequent date result in a change of control of our
company.
7.
PROJECTED FINANCIAL STATEMENTS
See financials attached.
Note 1. Organization, History and Business
EHCO, LLC, (?the Company?) became a Limited Liability
Corporation in Florida on August 4, 2017. The Company was
established to help drive synergies among these underlying
companies, and to create a comprehensive ?capital market system
for entrepreneurs?; the Company's fiscal year end is December
31.
Note 2. Revenue Recognition
Revenue is derived from licensing, technology, origination and
placement fees. Revenue is recognized in accordance with GAAP.
Note 3. Stock Based Compensation
When applicable, the Company will account for stock-based
payments to employees in accordance with ASC 718, ?Stock
Compensation? (?ASC 718?). Stock-based payments to employees
include grants of stock, grants of stock options and issuance
of warrants that are recognized in the consolidated statement
of operations based on their fair values at the date of grant.
The Company accounts for stock-based payments to non-employees
in accordance with ASC 505-50, ?Equity-Based Payments to Non-
Employees.? Stock-based payments to non-employees include
grants of stock, grants of stock options and issuances of
warrants that are recognized in the consolidated statement of
operations based on the value of the vested portion of the
award over the requisite service period as measured at its
then-current fair value as of each financial reporting date.
The Company calculates the fair value of option grants and
warrant issuances utilizing the Binomial pricing model. The
amount of stock-based compensation recognized during a period
is based on the value of the portion of the awards that are
ultimately expected to vest. ASC 718 requires forfeitures to
be estimated at the time stock options are granted and warrants
are issued to employees and non-employees, and revised, if
necessary, in subsequent periods if actual forfeitures differ
from those estimates. The term ?forfeitures? is distinct from
?cancellations? or ?expirations? and represents only the
unvested portion of the surrendered stock option or
warrant. The Company estimates forfeiture rates for all
unvested awards when calculating the expense for the
period. In estimating the forfeiture rate, the Company
monitors both stock option and
Note 6. Income Taxes
The Company adopted the provisions of ASC 740-10-50, formerly
FIN 48, and ?Accounting for Uncertainty in Income Taxes?. The
Company had no material unrecognized income tax assets or
liabilities as of October 1, 2016.
The Company?s policy regarding income tax interest and
penalties is to expense those items as general and
administrative expense but to identify them for tax purposes.
During the period September 7, 2016 (inception) through October
1, 2016 there were no income tax, or related interest and
penalty items in the income statement, or liabilities on the
balance sheet. The Company files income tax returns in the U.S.
federal jurisdiction and the state of Delaware. We are not
currently involved in any income tax examinations.
Note 7. Going Concern
The accompanying financial statements have been prepared
assuming that the Company will continue as a going concern.
Currently, the Company has no operating history and has not
generated significant revenue. These factors raise substantial
doubt about the Company?s ability to continue as a going
concern. Management believes that the Company?s capital
requirements will depend on many factors including the success
of the Company?s development efforts and its efforts to raise
capital. Management also believes the Company needs to raise
additional capital for working capital purposes. There is no
assurance that such financing will be available in the
future. The conditions described above raise substantial
doubt about our ability to continue as a going concern. The
financial statements of the Company do not include any
adjustments relating to the recoverability and classification
of recorded assets, or the amounts and classifications of
liabilities that might be necessary should the Company be
unable to continue as a going concern.
?
8.
SIGNATURE PAGE
Pursuant to the requirements of Regulation A, the issuer
certifies that it has reasonable grounds to believe
that it meets all of the requirements for filing on Form
1-A and has duly caused this Offering statement to be
signed on its behalf by the undersigned, thereunto duly
authorized, in the City of Boca Raton and County of
Palm Beach, in the State of Florida, March 7, 2018.
EHCO, LLC
By:
/s/ Stephen H.
Watkins
Name:
Stephen H. Watkins
Title:
Managing Member
(and Principal Executive
Officer)
In accordance with the requirements of the Securities
Act of 1933, this registration statement was signed
by the following persons in the capacities
and on the dates stated.
Signature
Title
Date
/s/ Stephen H.
Watkins
Managing Member
March 7th, 2018
Stephen H. Watkins
(and Principal
Executive Officer)