DelphX Announces Warrant Extension

Rhea-AI Summary

DelphX Capital Markets (DPXCF) is seeking TSX Venture Exchange approval to extend the exercise period of 5,430,250 share purchase warrants by one year to June 29, 2026. The warrants, originally issued in a June 2023 private placement, are exercisable at $0.15 per common share. Notably, 5,055,250 warrants are held by related parties, constituting a related party transaction under MI 61-101. However, the company can bypass formal valuation and minority approval requirements as the warrants' fair market value is below 25% of DelphX's market capitalization. All other warrant terms will remain unchanged.

Positive

• None.

Negative

• Extension of warrant expiration suggests potential challenges in executing business plans within original timeline
• 93% of warrants are held by related parties, indicating high insider concentration

Toronto, Ontario--(Newsfile Corp. - June 19, 2025) - 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 5,430,250 share purchase warrants, all of which are exercisable at $0.15 per common share (collectively, the "Warrants"). The Warrants were issued pursuant to a private placement announced June 29, 2023. DelphX proposes to extend the expiry date for these Warrants by one year to June 29, 2026.

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 5,055,250 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 US Bank. 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/256202

FAQ

What is the new expiration date for DPXCF's warrants?

The warrants' expiration date will be extended to June 29, 2026, subject to TSX Venture Exchange approval.

How many warrants are affected by DelphX's warrant extension?

A total of 5,430,250 share purchase warrants are affected by the extension.

What is the exercise price of DelphX's warrants?

The warrants are exercisable at $0.15 per common share.

Why doesn't DPXCF need minority shareholder approval for the warrant extension?

No minority approval is required as the warrants' fair market value is less than 25% of DelphX's market capitalization.

How many warrants are held by related parties in DPXCF?

5,055,250 warrants, representing about 93% of the total warrants, are held by related parties.