DelphX Announces Closing of Additional Units in Over-Subscribed Non-Brokered Unit Private Placement

Rhea-AI Summary

DelphX Capital Markets (TSXV: DELX) (OTCQB: DPXCF) has completed an additional issuance in its over-subscribed non-brokered private placement, raising C$50,000 through the sale of 714,286 units at C$0.07 per unit. This brings the total placement to 7,276,428 units for aggregate proceeds of C$509,350.

Each unit comprises one common share and one purchase warrant, with warrants exercisable at C$0.08 per share for five years from issuance. The securities will have a four-month plus one-day hold period, and the offering remains subject to TSX Venture Exchange approval. The company plans to use the proceeds for general corporate purposes.

Positive

• Successfully raised additional C$50,000 in over-subscribed placement
• Total placement reached C$509,350 in gross proceeds
• 5-year warrant term provides long-term funding flexibility

Negative

• Dilutive impact from issuance of 7,276,428 new units
• Additional dilution possible from warrant exercise
• Low unit price of C$0.07 indicates challenging market conditions

Toronto, Ontario--(Newsfile Corp. - March 24, 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 further to its news releases dated March 19, 2025 and March 21, 2025 with respect to its non-brokered private placement, it has issued an additional 714,286 units (the "Units") at a subscription price of C$0.07 per Unit, for additional gross proceeds of C$50,000 ("the Offering"). Completion of the additional issuance will result in the Company having issued an aggregate of 7,276,428 Units for aggregate proceeds of $509,350 in the private placement. Each Unit consists of one common share ("Common Share") and one Common Share purchase warrant ("Warrant"). Each Warrant entitles the holder to purchase one Common Share at a price of $0.08, 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 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 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/245834

FAQ

How much did DelphX (DPXCF) raise in their March 2025 private placement?

DelphX raised total proceeds of C$509,350 through the issuance of 7,276,428 units in their March 2025 private placement.

What is the exercise price and term for DelphX (DPXCF) warrants issued in the private placement?

The warrants have an exercise price of C$0.08 and are exercisable for a five-year period from the date of issuance.

What is the unit price and structure in DelphX's (DPXCF) March 2025 private placement?

Units were priced at C$0.07 each, with each unit consisting of one common share and one common share purchase warrant.

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

The securities have a hold period of four months plus one day from the date of issuance.