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TORONTO, Sept. 4, 2019 /CNW/ - DelphX Capital
Markets Inc. (TSXV: DELX) ("DelphX") announces that
it has closed both a non-brokered unit private placement (press
release dated May 3, 2019) (the
"Unit Financing") and a non-brokered secured, convertible
debenture private placement (press release dated May 15, 2019) (the "Convertible Debenture
Financing") (collectively, the "Offerings").
Unit Financing
The Unit Financing consisted of 8,116,500 units (each a
"Unit") issued at $0.20 per
Unit, raising proceeds of $1,623,300. Each Unit consists of one
common share ("Common Share") of DelphX and one common share
purchase warrant (each a "Warrant"). Each Warrant
entitles the holder to purchase one Common Share at a price of
$0.30, until May 24, 2021.
In connection with the Unit Financing, DelphX issued 393,155
finders' warrants (each a "Finder Warrant") and paid
$8,085 in finders' fees. Each
Finder Warrant entitles the holder to purchase one Common Share at
a price of $0.30, until May 16, 2021.
Convertible Debenture Financing
The Convertible Debenture Financing consisted of $620,000 principal amount secured convertible
debentures (the "Debentures"). The Debentures will
mature on May 31, 2021 (the
"Maturity Date") and bear interest at a rate of 12% per
annum, calculated and payable semi-annually, commencing on
November 30, 2019. The
Debentures are secured with a fixed and floating charge over the
present and future assets of DelphX, pursuant to a general security
agreement.
The principal amount of the Debentures may be converted at the
option of the holder to one unit (a "Debenture Unit") for
each $0.15 of outstanding
principal. Each Debenture Unit consists of one Common Share
and one warrant (a "Debenture Warrant"). Each
Debenture Warrant will be exercisable to purchase one Common Share
at a price of $0.20, until
May 31, 2021.
In connection with the Convertible Debenture Financing, DelphX
issued 217,233 finders' warrants (each a "Debenture Finder
Warrant") and paid $17,500 in
finders' fees. Each Debenture Finder Warrant is exercisable
to purchase one Common Share at a price of $0.20, until May 31,
2021.
The securities issued pursuant to the Offerings are subject to a
statutory four-month-plus-one-day hold period, ending September 25, 2019 in the case of the Unit
Financing and October 1, 2019 in the
case of the Convertible Debenture Financing.
The Offerings were conducted in reliance upon certain prospectus
exemptions and are subject to TSX Venture Exchange approval.
Following closing of the Offerings and as at the date of this press
release, DelphX has 89,229,876 Common Shares outstanding.
About DelphX
DelphX is a technology and financial services company focused on
optimizing fixed income markets. Its Cloud-based platform employs
distributed ledger technology, actuarial science and reinsurance
protocols to enable fixed income dealers to offer new Rule 144A
securities that optimally 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 and
transparently administered within DelphX's immutable distributed
ledger. A traditional book-entry record of each security will also
be maintained in parallel by an independent 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 platform. 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.
