DelphX Announces Changes to Management and Board of Directors, Update on Filing of Financial Statements

June 1, 2020

Toronto, Ontario–(Newsfile Corp. – June 1, 2020) – DelphX Capital Markets Inc. (TSXV: DELX) (“DelphX” or the “Company“) announced today the election of Patrick Wood to the Company’s Board of Directors and as President and Chief Executive Officer. Mr. Wood’s appointment is subject to approval by the TSX Venture Exchange. He assumes the role from Patricia Ziegler who has resigned from her position as a director and President and Chief Executive Officer.

Mr. Wood is a technology industry veteran who brings more than 25 years of experience in the capital markets and emerging technology sector to his new role at DelphX. He is the Founder of Tormont Group, a cross border Advisory celebrating its 6th year as an active participant in North American markets. Prior to Tormont Group, Mr. Wood held a Managing Directors role at Loewen Ondaatje McCutcheon, and Vice President role at BMO Nesbitt Burns, and CIBC World Markets.

“On behalf of the DelphX team, I would like to thank Patricia for her leadership during a challenging transitional period. I have been involved with DelphX for close to four years as an advisor and investor, so this will be a seamless transition to bring this technology to market,” explained DelphX CEO Wood. “We have a revolutionary capital markets platform at the commercial stage, so the final step is to go live with participating parties. I am looking forward to helping the Company reach that objective as quickly as possible.”

Update on Filing of Financial Statements:

Operationally, DelphX is also reporting that the filing of its audited annual financial statements, management’s discussion and analysis and related CEO and CFO certifications for the financial year ended December 31, 2019 (the “Annual Filings“), will be delayed beyond the filing deadline of June 13, 2020 (as extended pursuant to Ontario Instrument 51-502 Temporary Exemption from Certain Corporate Finance Requirements). DelphX’s filing of its first quarter interim financial statements, management’s discussion and analysis and related CEO and CFO certifications (the “Interim Filings“) will also be delayed beyond the extended filing deadline of July 14, 2020. The Company recently completed a private placement raising the funds necessary to complete the audit, but under a new commitment to significantly reduce operating costs, also made the decision to change to a new auditor. Discussion with the Company’s current auditor and its proposed successor auditor are near finalization.

DelphX has made an application to the Ontario Securities Commission (the “OSC“) for a management cease trade order (the “MCTO“). The MCTO would not affect the ability of shareholders who are not insiders of the Company to trade their securities. There is no certainty that the MCTO will be granted. If the MCTO is not issued by the OSC, the applicable Canadian securities regulatory authorities could issue a general cease trade order against DelphX for failure to file the Annual Filings within the prescribed time period. The Company intends to work diligently and expeditiously with its auditors and expects to complete its Annual Filings on or before July 13, 2020 and its Interim Filings on or before July 31, 2020.

DelphX also intends to satisfy the provisions of the alternate information guidelines of section 10 of National Policy 12-203 – Management Cease Trade Orders as long as it is in default of the filing requirements.

The Company confirms that there are no insolvency proceedings against it as of the date of this press release. The Company also confirms that there have been no material business developments since the April 27, 2020 news release that have not been generally disclosed as of the date of this press release.

About DelphX:

DelphX is a technology and financial services company focused on optimizing credit markets. Its Cloud-based technology, actuarial science and reinsurance protocols enable fixed income dealers to offer new Rule 144A securities that optimally transfer and diffuse credit risk. The new DelphX platform will be regulated by the SEC and enable dealers to competitively structure, sell and make markets in:

  • Covered Put Options (CPOs) that provide secured default protection for underlying corporate, municipal and sovereign securities, with each CPO strike-price equaling the par value of its underlying security
  • Covered Reference Notes (CRNs) that enable credit investors to take on the default exposure of a single underlying security or optionally participate in a pool of diversified risks that broadly diffuses the impact of credit events.

All CPOs and CRNs will be collateralized by investment grade assets held in custody by an independent custodian.

Forward-Looking Statements

This news release contains certain “forward-looking statements”. Such forward-looking statements involve risks and uncertainties, both known and unknown. The results or events depicted in these forward-looking statements may differ materially from actual results or events. In addition to other factors and assumptions which may be identified herein, assumptions have been made regarding and are implicit in, among other things: the state of the capital markets, tax issues associated with doing business internationally, the ability of DelphX to successfully manage the risks inherent in pursuing business opportunities in the financial services industry, and the ability of DelphX to obtain qualified staff, equipment and services in a timely and cost-efficient manner to develop its business. 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 securities laws, DelphX disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise.

For more information about DelphX, please visit

Patrick Wood
DelphX Capital Markets Inc.
E: [email protected]
T: 416.473.9133

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.