DelphX Capital Markets Inc. (TSXV: DELX) (OTCQB: DPXCF) (“DelphX”), a leader in the development of new classes of structured products for the fixed income market, is providing an operational update in advance of significant launch-related milestones scheduled for the month of September.
After a lengthy process period, outside counsel has completed the main documentation required for the launch of the Company’s novel Credit Rating Security (CRS) product, which will give bond holders and traders the ability to position against potential rating changes on existing bonds. This will be the first product of its kind in the structured products market. DelphX is now able to advance the CRS product to commercial stage, with a goal to go live with committed and well recognized market participants in coming weeks. The Company will provide additional details on its go-to-market strategy following the official launch.
Key Hires Add Operational Expertise:
New CFO — Bill Hahn
As part of a strategic plan to add operational expertise to coincide with the CRS commercial launch, DelphX is pleased to announce the addition of financial veteran Bill Hahn, who has assumed the role of CFO. Mr. Hahn brings more than 18 years of experience in both public accounting and finance across a variety of industries, with a background that includes audit and assurance at PwC, and in-house senior and executive roles, primarily at companies expanding their presence in the public markets. Most recently, he was CFO of The Hempshire Group Inc. during its move to the TSX Venture exchange; Director of Finance/Interim CFO at Big Rock Brewery Inc, where he implemented financial reporting and planning improvement programs; and Manager/Finance at Sundial Growers, Inc., where he was part of the senior finance team that transitioned Sundial from a small domestic private entity to a large international public company listed on NASDAQ.
With experience in multiple financial roles and sectors, Mr. Hahn has a strong knowledge of regulatory requirements across multiple domestic and foreign jurisdictions, including Canada (TSX), the U.S. (NASDAQ & NYSE) and the UK (AIM). In the capital markets, he has been involved in a number of successful financial transactions, including a NASDAQ IPO that raised USD $143 million.
New Company Advisor — Chris Schnarr
DelphX is also pleased to announce the addition of its newest Advisor, Chris Schnarr, who will be assisting the company in all current and future strategic initiatives and collaborations. Mr. Schnarr is a lifetime entrepreneur and a well-known figure in the public markets. His business experience is formidable, spanning a broad range of roles and industries, with particular emphasis on founding, managing, and advising growth companies in areas such as strategy, corporate finance, capital markets, corporate development, M&A, financial reporting and governance. In his various roles, he has assisted in raising over $5 billion dollars of equity and debt capital, and executed on over 30 M&A transactions, along with many key strategic partnerships.
A veteran of the public markets, Mr. Schnarr also has over 30 years of Board and management experience across NYSE, TSX, CSE and TSXV-listed companies, as well as extensive audit and compensation committee experience. He holds an MBA (Finance) from UBC (1990), is a member of the Institute of Corporate Directors, a graduate of the Directors Education Program at the Rotman School of Business at the University of Toronto, and holds the ICD.D designation.
“One of our common themes in past communication has been the reminder that launching a new product category in the fixed income market involves a high level of legal and industry-specific expertise, expense, and time. So, to finally go live with a product that is one of its kind in the world’s largest financial marketplace is a major milestone and a testament to the dedication and fortitude of our entire team,” said DelphX CEO Patrick Wood. “Our launch week will be a true live market, with participants drawn from a growing list of institutions that understand the need to address the risk associated with bond downgrades by the major rating agencies. Importantly, this launch will officially begin our revenue and growth cycle, so we look forward to more frequent, substantive updates as our launch phase progresses.”
“The calibre of our two new team members speaks volumes about the importance of this launch and is a reflection of our goal to increase our operational expertise as we enter our growth phase. Bill Hahn fits this mode perfectly, having held CFO and other executive roles at companies during key transitional periods. He is the kind of hands-on CFO who will help us scale both our product offering and operations as we grow. Similarly, our new Company Advisor, Chris Schnarr, brings a tremendous long-term track record that seems to touch on every aspect of public and private finance and business development. Adding two industry veterans to coincide with our launch will strengthen us as we work to build both commercial and financial momentum in the coming months.”
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 optimally transfer and diffuse credit risk, while allowing the enhancement of yield. The new DelphX securities enable dealers and their qualified institutional investors (QIBs) accounts to competitively structure, sell and make markets in:
- Collateralized put options (CPOs) that provide secured default protection or rating downgrade protection for underlying corporate, municipal and sovereign securities;
- Collateralized reference notes (CRNs) that enable credit investors to take on the default or rating downgrade exposure of an underlying security in exchange for enhanced yield.
All CPOs and CRNs are fully collateralized and held in custody by BNY Mellon. CPOs and CRNs are provisionally-patent and IP protected 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.
This news release contains certain “forward-looking statements” including, without limitation, statements regarding the launch of the DelphX platform. Such 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 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 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.