DelphX Announces Non-Brokered Unit Private Placement

Rhea-AI Summary

DelphX Capital Markets (OTCQB: DPXCF) has announced a non-brokered private placement offering of 2,151,000 units at C$0.07 per unit, aiming to raise gross proceeds of C$150,570. Each unit comprises one common share and one purchase warrant, with warrants exercisable at $0.20 per share for five years from issuance.

The company will pay cash finder's fees and issue finders' warrants to eligible finders, exercisable at $0.20 for five years. The offering is subject to TSX Venture Exchange approval and includes a four-month plus one-day hold period. Company insiders may participate in the offering, with proceeds intended for general corporate purposes.

Positive

• None.

Negative

• Small offering size of only C$150,570 indicates limited funding scope
• Significant warrant dilution potential with exercise price at $0.20
• Additional dilution through finders' warrants
• Low unit price of C$0.07 suggests challenging market conditions

Toronto, Ontario--(Newsfile Corp. - May 22, 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 a non-brokered private placement ("the Offering") of 2,151,000 units (the "Units") at a subscription price of C$0.07 per Unit, for gross proceeds of C$150,570. 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 $0.20, 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 $0.20 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 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/253081

FAQ

What is the size and price of DelphX (DPXCF) private placement offering in May 2025?

DelphX is offering 2,151,000 units at C$0.07 per unit, aiming to raise gross proceeds of C$150,570.

What are the terms of DPXCF's warrant offering in the May 2025 private placement?

Each warrant allows purchase of one common share at $0.20 for five years from issuance date.

How long is the hold period for DelphX's May 2025 private placement securities?

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

What will DelphX use the proceeds from the May 2025 private placement for?

DelphX intends to use the net proceeds for general corporate purposes.

Can DelphX insiders participate in the May 2025 private placement?

Yes, DelphX insiders may participate in the offering, subject to compliance with the company's insider trading policy.