DelphX Announces Non-Brokered Unit Private Placement

Rhea-AI Summary

DelphX Capital Markets Inc. (TSXV: DELX) (OTCQB: DPXCF) has announced a non-brokered private placement offering of 3,972,223 units at C$0.09 per unit, aiming to raise gross proceeds of C$357,500. Each unit comprises one common share and one purchase warrant, with the warrant allowing the holder to buy one common share at C$0.25 within five years of issuance.

The offering is subject to TSX Venture Exchange approval, and securities will have a four-month plus one-day hold period. Company insiders may participate in the offering, complying with DelphX's insider trading policy. The net proceeds are intended for general corporate purposes.

Positive

• Fully subscribed private placement, indicating investor interest
• Potential to raise C$357,500 in gross proceeds
• Five-year warrant term provides long-term potential for additional capital

Negative

• Potential dilution of existing shareholders' equity
• Offering price of C$0.09 per unit may be below current market price
• Warrant exercise price of C$0.25 suggests expectation of significant share price increase for profitability

Toronto, Ontario--(Newsfile Corp. - July 26, 2024) - DelphX Capital Markets Inc. (TSXV: DELX) (OTCQB: DPXCF) ("DelphX"), a leader in the development of new classes of structured products for the fixed income market, announces that it intends to proceed with a fully subscribed non-brokered private placement ("the Offering") of 3,972,223 units (the "Units") at a subscription price of C$0.09 per Unit, for gross proceeds of C$357,500. Each Unit will consist of one common share ("Common Share") and one Common Share purchase warrant ("Warrant"). Each Warrant will entitle the holder to purchase one Common Share at a price of $0.25, for a period of five years from the date of issuance.

Completion of the Offering is subject to the approval of the TSX Venture Exchange. The securities issued pursuant to the Offering will be subject to a hold period of four months plus one day from the date of issuance. DelphX insiders may participate in the Offering, subject to compliance with DelphX's insider trading policy.

DelphX intends to use the net proceeds from the Offering in connection with general corporate purposes.

About DelphX Capital Markets Inc.

DelphX is a technology and financial services company focused on developing and distributing the next generation of structured products. Through its special purpose vehicle Quantem LLC, the Company enables fixed income dealers to offer new private placement securities that provide mitigation of spread and capital charge losses when downgrades occur, while allowing for attractive returns. The new DelphX securities will enable dealers and their qualified institutional investors (QIBs) accounts to competitively structure, sell and make markets in:

• Collateralized put options (CPOs) that provide secured rating downgrade protection for underlying corporate bonds;

• Collateralized reference notes (CRNs) that enable investors to take on a capped rating downgrade exposure of an underlying security in exchange for attractive returns.

All CPOs and CRNs are fully collateralized and held in custody by BNY Mellon. CPOs and CRNs are proprietary products created and owned by DelphX Capital Markets.

For more information about DelphX, please visit www.delphx.com

Mark Forney, Corporate Development
DelphX Capital Markets Inc.
mark.forney@delphx.com
(718) 509-2160

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/217837

FAQ

What is the size and price of DelphX's (DPXCF) private placement announced on July 26, 2024?

DelphX announced a private placement of 3,972,223 units at C$0.09 per unit, aiming to raise gross proceeds of C$357,500.

What does each unit in DelphX's (DPXCF) private placement consist of?

Each unit consists of one common share and one common share purchase warrant, with the warrant exercisable at C$0.25 for five years.

How long is the hold period for securities issued in DelphX's (DPXCF) July 2024 private placement?

The securities issued in the private placement will have a hold period of four months plus one day from the date of issuance.

What will DelphX (DPXCF) use the proceeds from the July 2024 private placement for?

DelphX intends to use the net proceeds from the offering for general corporate purposes.