DelphX Midsummer Update

Rhea-AI Summary

DelphX Capital Markets (OTCQB: DPXCF) provided a midsummer business update highlighting three key revenue verticals. The company is expanding its broker-dealer operations to include marketing private placements for growth companies across North America, with two engagements already secured. DelphX is also developing a new crypto-focused product called Quantem Crypto Security (QCS), expected to launch in late August or early September 2025, aimed at helping institutional buyers hedge crypto holdings with reduced counterparty risks.

The company continues development of its Credit Rating Securities (CRS) product while large insurers evaluate it. The new private placement business is expected to generate fee-based revenue to support operations while CRS progresses to market.

Positive

• Expansion into private placement marketing with two engagements already secured
• Development of new Quantem Crypto Security (QCS) product for institutional crypto hedging
• Creation of three distinct revenue verticals to diversify income streams

Negative

• Core CRS product still pending market entry and insurer evaluation
• Entry into volatile crypto market carries significant risks
• No current revenue figures or timelines provided for revenue generation

Toronto, Ontario--(Newsfile Corp. - July 31, 2025) - DelphX Capital Markets Inc. (TSXV: DELX) (OTCQB: DPXCF) ("DelphX" or the "Company"), a leader in the development of new classes of structured products, is pleased to update shareholders and the public on progress in its business endeavors. As the Company's hallmark product, Credit Rating Securities (CRS), continues to be evaluated by large insurers, the Company recently made the decision to leverage and expand our broker dealer, DelphX Services Corp, to market private placements for both public and private growth companies across North America. With two private placement engagements executed and being marketed, the Company believes that the revenues generated from fees associated with these and future engagements will allow growth while allowing CRS to come to market. Not only does this strategy strengthen the income statement but also serves to broaden the Company's relevance and credibility.

The Company also wishes to announce that it has been working on a new format of its underlying structured product focused on today's ever-growing and volatile crypto market. As Qualified Institutional Buyers and larger corporate treasury strategies seek to navigate and differentiate themselves from others and hedge their holdings, apart from buying OTC options and other leveraged transactions, the DelphX program is positioned to allow safe hedging without the counterparty risks inherent in these other formats. Given the dearth of new company crypto treasuries and exuberant enthusiasm in the sector, the ability for a select few companies and managers to differentiate themselves by being properly and safely hedged will separate them from a crowd of what could be overly enthusiastic investors and companies. The Company is naming this new tool Quantem Crypto Security (QCS), and expects rollout at the end of August or early September. As part of this strategy, and unlike the CRS strategy, the Company intends to populate the new solution with active users and associated transactions at the moment of launch. The reception has been very encouraging, and the Company will provide shareholders with regular updates as this new vertical evolves. It is noted that the crypto market is high risk and subject to significant volatility.

With three distinct potential revenue verticals, the Company expects enhanced revenue opportunities across a broad range of sectors.

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 broker dealers to offer new private placement securities that provide for both fixed income and cryptocurrency solutions. 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 and/or protection from losses in cryptocurrency holdings;

• Collateralized reference notes (CRNs) that enable investors to take on a capped rating downgrade and/or cryptocurrency loss exposure of an underlying security or cryptocurrency 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

Forward-Looking Statements

This news release contains certain forward-looking statements, including statements regarding our business strategy and product development. Forward-looking statements involve risks and uncertainties, both known and unknown, that may cause actual results or events to be materially different from those expressed or implied by such forward-looking statements, including but not limited to, business, economic and capital market conditions, regulatory uncertainties, and the demand for our products. The forward-looking statements in this news release are based on factors and assumptions regarding, among other things, the state of the capital markets, the ability of DelphX to successfully manage the risks inherent in pursuing business opportunities in the financial services industry and the volatile crypto market, and the ability of DelphX to obtain qualified staff, equipment and services in a timely and cost-efficient manner to develop its business. Although we believe that the assumptions underlying these forward-looking statements are reasonable, they may prove to be incorrect. Given these risks, uncertainties and assumptions, you should not unduly rely on these forward-looking statements. Any forward-looking statement reflects information available to DelphX as of the date of this news release and, except as may be required by applicable laws, DelphX undertakes no intent or obligation to update or revise any forward-looking statement, whether as a result of new information, future events or results or otherwise.

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/260907

FAQ

What are the three revenue verticals announced by DelphX (DPXCF) in July 2025?

DelphX's three revenue verticals are: 1) Credit Rating Securities (CRS), 2) Private placement marketing through DelphX Services Corp, and 3) Quantem Crypto Security (QCS) for crypto hedging.

When will DelphX launch its new Quantem Crypto Security (QCS) product?

DelphX expects to launch its QCS product at the end of August or early September 2025, with active users and transactions ready at launch.

How is DelphX expanding its broker-dealer operations?

DelphX is expanding its broker-dealer subsidiary, DelphX Services Corp, to market private placements for public and private growth companies across North America, with two engagements already secured.

What is the purpose of DelphX's new QCS crypto product?

The QCS product is designed to provide safe hedging for crypto holdings without counterparty risks for Qualified Institutional Buyers and corporate treasury strategies.

How will the new private placement business benefit DelphX?

The private placement business is expected to generate fee-based revenue to support company growth while allowing the CRS product to come to market, while also broadening DelphX's market relevance and credibility.