DelphX Announces Non-Brokered Unit Private Placement

Rhea-AI Summary

DelphX Capital Markets (TSXV: DELX) (OTCQB: DPXCF) has announced an oversubscribed non-brokered private placement offering of 7,090,715 units at C$0.07 per unit, targeting gross proceeds of C$496,350.

Each unit comprises one common share and one purchase warrant, with warrants exercisable at C$0.08 per share for a five-year period. The company will pay cash finder's fees and issue finders' warrants to eligible finders, exercisable at C$0.08 for five years.

The offering requires TSX Venture Exchange approval and includes a four-month plus one-day hold period. Company insiders may participate in the placement, and proceeds will support general corporate purposes.

Positive

• Offering is oversubscribed, indicating strong investor interest
• Long warrant exercise period of 5 years provides extended funding flexibility
• Insider participation allowed, showing management confidence

Negative

• Significant dilution with 7,090,715 new units being issued
• Low unit price of C$0.07 indicates potential company undervaluation
• Additional dilution possible through finder's warrants

Toronto, Ontario--(Newsfile Corp. - March 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 proceed with an oversubscribed non-brokered private placement ("the Offering") of 7,090,715 units (the "Units") at a subscription price of C$0.07 per Unit, for gross proceeds of C$496,350. 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 $0.08, 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 $0.08 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/245278

FAQ

What are the terms of DelphX Capital Markets (DPXCF) March 2025 private placement?

The private placement offers 7,090,715 units at C$0.07 each, with each unit containing one common share and one warrant exercisable at C$0.08 for five years.

How much capital is DelphX (DPXCF) raising in its latest private placement?

DelphX is raising C$496,350 in gross proceeds through its oversubscribed non-brokered private placement.

What is the exercise price and duration of the warrants in DPXCF's 2025 offering?

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

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

Securities issued in the private placement have a hold period of four months plus one day from the date of issuance.