DelphX Announces Warrant Extension
Rhea-AI Summary
DelphX Capital Markets (TSXV: DELX) (OTCQB: DPXCF) announces plans to seek TSX Venture Exchange approval to extend the exercise period of 5,422,221 share purchase warrants by one year to December 7, 2025. The warrants, originally issued in a December 2022 private placement, are exercisable at $0.15 per common share. Of these warrants, 1,611,111 are held by related parties, constituting a related party transaction. The transaction is exempt from formal valuation and minority approval requirements as the warrants' fair market value is below 25% of DelphX's market capitalization.
Positive
- None.
Negative
- Warrant extension may indicate company's need to maintain financing options
- Significant portion of warrants (29.7%) held by related parties
News Market Reaction
On the day this news was published, DPXCF declined 9.67%, reflecting a notable negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
Toronto, Ontario--(Newsfile Corp. - November 6, 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 seek approval of the TSX Venture Exchange to extend the exercise period of share purchase warrants.
DelphX intends to seek approval of the TSX Venture Exchange to extend the exercise period of a total of 5,422,221 share purchase warrants, all of which are exercisable at
All other terms and conditions of the Warrants will remain unchanged. The Warrant extension is subject to acceptance by the TSX Venture Exchange.
A total of 1,611,111 Warrants are held by parties who are considered to be "related parties" of DelphX Therefore, the amendment of Warrants constitutes a "related party transaction" as contemplated by Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions, and TSXV Policy 5.9 - Protection of Minority Security Holders in Special Transactions. However, the exemptions from formal valuation and minority approval requirements provided for can be relied upon as the fair market value of the Warrants does not exceed
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/229125
FAQ
How many warrants is DelphX (DPXCF) extending in November 2024?
What is the new expiration date for DelphX (DPXCF) warrants?
What is the exercise price of DelphX (DPXCF) warrants being extended?
How many warrants are held by related parties in DelphX (DPXCF)?
