DelphX Announces the Issuance of Shares for Services
Rhea-AI Summary
DelphX Capital Markets (TSXV: DELX) (OTCQB: DPXCF) announced it will issue 138,888 common shares to a consultant as payment for services related to securing a non-binding letter of intent with hedge funds for up to $3 billion of notional credit spread protection through their CRS program. The shares will be issued at $0.18 per share, totaling C$25,000. Following the issuance, which requires TSX Venture Exchange approval, DelphX will have 181,812,350 common shares outstanding. The shares will be issued as restricted securities under U.S. Securities Act exemptions.
Positive
- Secured non-binding LOI with hedge funds for potential $3 billion in credit spread protection business
- Company maintains cash by paying for services with shares instead of cash
Negative
- Share issuance will cause dilution to existing shareholders
- LOI is non-binding, indicating uncertainty in deal completion
News Market Reaction – DPXCF
In the trading session that priced this news, DPXCF declined 9.67%, reflecting a notable negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
AI-generated analysis. How Rhea-AI works. Not financial advice.
Toronto, Ontario--(Newsfile Corp. - November 20, 2024) - DelphX Capital Markets Inc. (TSXV: DELX) (OTCQB: DPXCF) ("DelphX" or the "Company"), a leader in the development of new classes of structured products for the fixed income market, announces that pursuant to an agreement with a consultant for services in connection with the conclusion of a non-binding letter of intent with multiple hedge fund counterparties for the offering of up to
The Common Shares will be issued at a deemed price of
The issuance of Common Shares will not result in a new control person, and subsequent to the issuance, DelphX will have 181,812,350 common shares outstanding.
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/230710