DelphX Announces Warrant Extension

Rhea-AI Summary

DelphX Capital Markets Inc. (TSXV: DELX) (OTCQB: DPXCF) has announced its intention to seek approval from the TSX Venture Exchange to extend the exercise period of 4,825,715 share purchase warrants. These warrants, originally issued in a private placement on August 25, 2022, are currently exercisable at $0.30 per common share. The proposed extension would push the expiry date by one year to August 25, 2025.

Notably, 1,429,286 warrants are held by related parties, making this a "related party transaction". However, DelphX can rely on exemptions from formal valuation and minority approval requirements as the fair market value of the warrants does not exceed 25% of the company's market capitalization.

Positive

• Potential for increased capital if warrants are exercised
• Extended timeframe for warrant holders to exercise, potentially increasing likelihood of exercise

Negative

• Dilution risk for existing shareholders if warrants are exercised

Toronto, Ontario--(Newsfile Corp. - August 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 seek approval of the TSX Venture Exchange to extend the exercise period of share purchase warrants.

DelphX intends to seek approval of the TSX Venture Exchange to extend the exercise period of a total of 4,825,715 share purchase warrants, all of which are exercisable at $0.30 per common share (collectively, the "Warrants"). The Warrants were issued pursuant to a private placement announced August 25, 2022. DelphX proposes to extend the expiry date for these Warrants by one year to August 25, 2025.

All other terms and conditions of the Warrants will remain unchanged. The Warrant extension is subject to acceptance by the TSX Venture Exchange.

A total of 1,429,286 Warrants are held by parties who are considered to be "related parties" of DelphX. Therefore, the amendment of Warrants constitutes a "related party transaction" as contemplated by Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions, and TSXV Policy 5.9 - Protection of Minority Security Holders in Special Transactions. However, the exemptions from formal valuation and minority approval requirements provided for can be relied upon as the fair market value of the Warrants does not exceed 25% of the market capitalization of DelphX.

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/220046

FAQ

How many warrants is DelphX Capital Markets (DPXCF) seeking to extend?

DelphX is seeking to extend the exercise period of 4,825,715 share purchase warrants.

What is the current exercise price of the warrants for DelphX Capital Markets (DPXCF)?

The warrants are currently exercisable at $0.30 per common share.

When were the original warrants issued by DelphX Capital Markets (DPXCF)?

The warrants were originally issued pursuant to a private placement announced on August 25, 2022.

What is the proposed new expiry date for the warrants of DelphX Capital Markets (DPXCF)?

DelphX proposes to extend the expiry date for these warrants by one year to August 25, 2025.

How many warrants are held by related parties of DelphX Capital Markets (DPXCF)?

A total of 1,429,286 warrants are held by parties considered to be 'related parties' of DelphX.