DelphX Announces Non-Brokered Unit Private Placement

Rhea-AI Summary

DelphX Capital Markets (TSXV: DELX) (OTCQB: DPXCF) announces a non-brokered private placement to raise C$348,100 through the issuance of 2,900,833 units at C$0.12 per unit. Each unit includes one common share and one purchase warrant exercisable at C$0.20 for five years. The company will pay cash finder's fees and issue finders' warrants to eligible finders. The offering requires TSX Venture Exchange approval and includes a four-month plus one-day hold period. Proceeds will be used for general corporate purposes.

Positive

• Secured full subscription for C$348,100 private placement
• Five-year warrant term provides long-term funding flexibility

Negative

• Potential dilution of existing shareholders through new share issuance
• Offering price of C$0.12 per unit indicates relatively low valuation

Toronto, Ontario--(Newsfile Corp. - November 15, 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 2,900,833 units (the "Units") at a subscription price of C$0.12 per Unit, for gross proceeds of C$348,100. 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 $0.20, for a period of five years from the date of issuance.

In connection with the Offering, DelphX will pay cash finder's fees and issue finders' warrants (the "Finders' Warrants") to eligible finders. The Finders' Warrants will be exercisable at $0.20 each for a period of five years after 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

George Wentworth, General Manager
DelphX Capital Markets Inc.
george.wentworth@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/230259

FAQ

How much money is DelphX (DPXCF) raising in its November 2024 private placement?

DelphX is raising C$348,100 through a non-brokered private placement of 2,900,833 units at C$0.12 per unit.

What is the warrant exercise price for DelphX's (DPXCF) November 2024 private placement?

The warrant exercise price is C$0.20 per common share, valid for a period of five years from the date of issuance.

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

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