DelphX Closes On Initial Phase Of Private Placement

October 23, 2018

TORONTOOct. 23, 2018 /PRNewswire/ — DelphX Capital Markets Inc. (TSXV: DELX) (“DelphX“) announced today that it has closed on more than one-third of its current round of funding at a subscription price of C$0.50 per share, for gross proceeds up to C$3,000,000.

The offering consists of one common share and one-half-of-one share purchase warrant, with each whole warrant entitling the holder to purchase one common share at a price of $0.70, for a period of 2 years from the date of closing. In the event the closing price of the DELX shares on the TSX Venture Exchange is equal to or greater than C$1.30 per share for 20 consecutive trading days at any time following such closing, however, DelphX may reduce the remaining exercise period of the warrants to a period not less than 30 days.

The securities issued in the offering are subject to a hold period of four months plus one day from the date of closing. In connection with the private placement, DelphX paid finder’s fees to eligible parties.

DelphX intends to use the net proceeds from the share sale for working capital and general corporate purposes.

About DelphX

DelphX is a technology company focused on optimally mitigating credit risk in the global fixed income markets. Its Cloud-based solution employs proprietary distributed ledger technology, actuarial science and reinsurance protocols to facilitate broad diffusion of default risks. DelphX’s new alternative trading system (“ATS”) facility will be regulated by the SEC and operated by its subsidiary, DelphX Services Corporation, a FINRA member firm, to facilitate the negotiation, purchase and trading of two new forms of Rule 144A Smart Securities:

  • 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; and
  • Covered Reference Notes (CRNs) that allow investors to take on exposure to the default risk of a single underlying security or to optionally participate in a pool of diversified risks that broadly diffuses the impact of credit events among all participants.

All CPOs and CRNs will be issued by Quantem Capital Corporation (“Quantem”), a wholly-owned subsidiary of DelphX, and transparently administered within an immutable Distributed Ledger. A traditional book-entry record of each CPO and CRN will also be maintained in parallel by Quantem’s issuing and paying agent to provide additional transparency and efficiency.

For more information about DelphX, please visit www.delphx.com.

Forward-Looking Statements

This news release contains certain “forward-looking statements” including, without limitation, statements regarding the launch of the DelphX market. 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 and Blockchain 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.

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.

SOURCE DelphX Capital Markets Inc.