DelphX Announces Non-Brokered Unit Private Placement

Rhea-AI Summary

DelphX Capital Markets Inc. (TSXV: DELX) (OTCQB: DPXCF) has announced a non-brokered private placement of 4,166,667 units at C$0.12 per unit, aiming to raise C$500,000 in gross proceeds. Each unit consists of one common share and one warrant, with warrants exercisable at C$0.25 for five years. The company will pay cash finder's fees and issue finders' warrants to eligible finders. The offering is subject to TSX Venture Exchange approval, with securities having a four-month plus one day hold period. DelphX insiders may participate, and the company plans to use the net proceeds for general corporate purposes.

Positive

• Fully subscribed private placement raising C$500,000 in additional capital
• Warrants provide potential for future capital at C$0.25 per share
• Five-year warrant term offers long-term flexibility for investors

Negative

• Potential dilution of existing shareholders' equity
• Offering price of C$0.12 per unit may indicate current market valuation challenges
• Reliance on private placement suggests possible difficulties in accessing traditional financing

News Market Reaction – DPXCF

%

1 alert

% News Effect

On the day this news was published, DPXCF declined NaN%, reflecting a moderate negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

Toronto, Ontario--(Newsfile Corp. - August 19, 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 4,166,667 units (the "Units") at a subscription price of C$0.12 per Unit, for gross proceeds of C$500,000 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 $0.25, 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 $0.25 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/220492

FAQ

What is the size and price of DelphX's private placement offering?

DelphX (DPXCF) is offering 4,166,667 units at C$0.12 per unit, aiming to raise C$500,000 in gross proceeds.

What do the units in DelphX's private placement consist of?

Each unit in DelphX's (DPXCF) private placement consists of one common share and one common share purchase warrant.

What are the terms of the warrants in DelphX's private placement?

The warrants in DelphX's (DPXCF) private placement allow holders to purchase one common share at C$0.25 for five years from the date of issuance.

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

Securities issued in DelphX's (DPXCF) private placement will have a hold period of four months plus one day from the date of issuance.