Boca Raton, FL: The Entrex Capital Market joint venture with Long Blockchain (OTC:LBCC) ispleased to announce the execution of a Material Definitive Agreement through an executed Letter of Intent to create a joint venture to establish a Carbon Trading market with Universal Solar Technology (OTC:UNSS).
The joint venture will use Entrex’s blockchain enabled technology platform to trade carbon credits, carbon offsets and other environmental securitized product. The platform would allow credits, offsets and other environment
products to be found, researched, tracked, managed and traded via regulated entities through a compliant platform.
Entrex shareholders will receive 20% of the joint ventures revenues up to $31,000,000 distributed on a monthly basis and will own 40% of the equity of the entity. Universal will invest $4,000,000 in cash for 40% of the joint venture
founding equity. Stephen H. Watkins, CEO of Entrex, is expected to join the UNSS Board of Directors. Universal also has a minimum buy-out option which allows it to purchase all remaining equity holders shares based on a
minimum of 11.6 times a minimum trailing twelve-month EBITDA of $15,000,000 – resulting in a minimum enterprise value of $174,000,000. This valuation is expected to be 15% below market comparables providing
Universal an estimated $30,000,000 in additional market valuation when and if the option is exercised.
“We see companies and consumers interested in carbon neutrality and believe we can use our proven, blockchain enabled, platform for producers to efficiently list carbon products while providing buyers access to industry compliant
products” said Stephen H. Watkins, CEO of the new joint venture.
“This is a tremendous transaction for UNSS and our investors” said Paul D. Landrew, CEO of Universal Solar. We expect the trading market to propel UNSS into a leadership position in the sector, utilizing the proven technology