Toronto, Ontario–(Newsfile Corp. – June 7, 2021) – DelphX Capital Markets Inc. (TSXV: DELX) (“DelphX“) today announces that it has entered into an agreement with convertible debtholders to issue common shares (the “Shares“) of DelphX to settle debts totalling $147,300 for accrued interest with the issuance of 626,809 Shares at a price of $0.235 each, subject to the approval of the TSX Venture Exchange. The Shares will be subject to a 4-month-plus-1-day hold period from the date of issuance. The shares-for-debt settlement and subsequent issuance of the Shares will not create a new Control Person.
After issuance of the Shares, DelphX will have 107,283,918 common shares outstanding.
A total of $120,000 (510,638 Shares, the “Related Shares“) are held by parties who are considered to be “related parties” of DelphX. Therefore, issuance of the Related Shares 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 Related Shares does not exceed 25% of the market capitalization of DelphX.
DelphX is a technology and financial services company focused on bringing new and exciting alternatives to structured product and credit markets. Through its special purpose vehicle Quantem and its broker-dealer DelphX Services Corp., it enables fixed income dealers to offer new Rule 144A securities that optimally transfer and diffuse credit risk, while allowing the enhancement of yield. 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, and
- Covered Reference Notes (CRNs) that enable credit investors to take on the default exposure of a single underlying security in exchange for enhanced yield.
All CPOs and CRNs will be collateralized and held in custody by an independent custodian. CPOs and CRNs are proprietary products created and owned by DelphX Capital Markets Inc.
For more information about DelphX, please visit www.delphx.com.
Patrick Wood, President & CEO
DelphX Capital Markets Inc.
E: [email protected]
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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