DelphX Announces the Issuance of Shares for Services for Advancement of Credit Rating Securities

June 20, 2024

June 20, 2024 9:20 AM EDT | Source: DelphX Capital Markets Inc.

Toronto, Ontario–(Newsfile Corp. – June 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 Castle Placement, LLC (“Castle”) to accelerate the market exposure and use of the DelphX Credit Rating Security product, originally announced by the Company on March 19, 2024, the Company will issue 10,900,000 common shares (the “Common Shares”) to Castle in satisfaction of the C$1,035,500 fee payable to Castle for advisory and support services in connection with the launch of the Credit Rating Security product provided under the agreement and grant Castle 645,000 options to purchase common shares of the Company at a price of $0.15 per share for a period of two years from issuance.

The Common Shares will be issued at a deemed price of $0.095 per share, being the current price of the Common Shares on the TSX Venture Exchange. The Issuance of the Common Shares will be subject to the approval of the TSX Venture Exchange. The Common Shares have not been and will not be registered under the United Sates Securities Act of 1933, as amended (the “U.S. Securities Act”), or any state securities laws, and will be issued as “restricted securities” (as defined in Rule 144 under the U.S. Securities Act), in reliance on exemptions from U.S. federal and state registration requirements.

The issuance of Common Shares will not result in a new control person, and subsequent to the issuance, DelphX will have 171,559,573 common shares outstanding.

About Castle Placement, LLC

Castle Placement is The Premier Private Capital Investment Bank™, with over 600,000 accredited investors and 64,500 institutional, private equity, venture capital and strategic investors, family offices, pension funds, foundations, endowments, sovereign wealth funds, hedge funds and lenders. Founded in 2009, Castle Placement has experienced investment bankers with significant personal relationships, fully integrated with its robust, data-driven technology platform. Member FINRA/SIPC. CPGOapp.com provides unparalleled and transparent access for issuers and investors.

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.

Mark Forney, Corporate Development
DelphX Capital Markets Inc.
[email protected]
(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.

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SOURCE: DelphX Capital Markets Inc.