DelphX Announces the Issuance of Shares for Services and Advancement of Credit Rating Securities

Rhea-AI Summary

DelphX Capital Markets announced the issuance of 1,000,000 common shares to a consultant for designing a pricing model for their Credit Rating Security product, valued at C$100,000. The shares are priced at $0.10 each, equivalent to the last closing price on the TSX Venture Exchange. This issuance, subject to TSX Venture Exchange approval, will not result in a new control person, and will bring the total common shares outstanding to 160,659,573. Additionally, DelphX's proposed non-brokered private placement of units is fully subscribed and pending TSX Venture Exchange approval. The pricing model aids in active price discovery for downgrade protection using CRS, but no transaction finalization is guaranteed.

Positive

• Issuance of 1,000,000 common shares valued at C$100,000 enhances consultant engagement.
• Pricing model supports active price discovery for downgrade protection using CRS.
• Proposed non-brokered private placement of units is fully subscribed.

Negative

• Issuance of shares will not be registered under U.S. Securities Act, limiting liquidity.
• No assurance of finalizing transactions for downgrade protection using CRS.

Toronto, Ontario--(Newsfile Corp. - June 19, 2024) - DelphX Capital Markets Inc. (TSXV: DELX) (OTCQB: DPXCF) ("DelphX" or the "Company"), a leader in the development of new classes of structured products for the fixed income market, announces that pursuant to an agreement with a consultant to design a pricing model for DelphX's Credit Rating Security product, the Company will issue 1,000,000 Common Shares (the "Common Shares") to the consultant in satisfaction of the C$100,000 fee payable to the consultant. The consultant is a very well known mathematician who has served this role successfully for multiple large recognized Wall Street dealers over his career.

The Common Shares will be issued at a deemed price of $0.10 per share, being the last closing price of the Common Shares on the TSX Venture Exchange on the date the model was completed. The issuance of the Common Shares will be subject to the approval of the TSX Venture Exchange. The Common Shares have not been and will not be registered under the United Sates Securities Act of 1933, as amended (the "U.S. Securities Act"), or any state securities laws, and will be issued as "restricted securities" (as defined in Rule 144 under the U.S. Securities Act), in reliance on exemptions from U.S. federal and state registration requirements.

The issuance of Common Shares will not result in a new control person, and subsequent to the issuance, DelphX will have 160,659,573 common shares outstanding.

The pricing model is currently being used as a basis for both buyers and sellers of downgrade protection using CRS, with active price discovery and negotiations on both sides. There can be no assurance as to the finalization of any transaction.

Further to the Company's announcement June 18, 2024 of its proposed non-brokered private placement of units, the Company announces that the private placement is fully subscribed. Closing is subject to the approval of the TSX Venture Exchange.

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/213571

FAQ

What did DelphX announce on June 19, 2024?

DelphX announced the issuance of 1,000,000 common shares to a consultant for designing a pricing model for their Credit Rating Security product, and the full subscription of their proposed non-brokered private placement.

What is the value of the shares DelphX issued to the consultant?

The shares are valued at C$100,000.

What is the price per share for the issuance to the consultant?

The price per share is $0.10, equivalent to the last closing price on the TSX Venture Exchange.

How many common shares will DelphX have outstanding after the issuance?

DelphX will have 160,659,573 common shares outstanding.

Is there any guarantee of transaction finalization using the pricing model?

No, there is no assurance of finalizing any transaction.

What is the status of DelphX's proposed non-brokered private placement?

The private placement is fully subscribed and pending TSX Venture Exchange approval.