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DelphX Secures CAD$675,600 Over-Subscribed Private Placement, Priced at a Premium to Market; New Funding Bolsters Balance Sheet Ahead of Planned Market Expansion
Toronto, Ontario--(Newsfile Corp. - August 25, 2022) - DelphX Capital Markets Inc. (TSXV:...
About this update from Delphx Capital Markets, Inc.
[{"type":"text","content":"DelphX Secures CAD$675,600 Over-Subscribed Private Placement, Priced at a Premium to Market; New Funding Bolsters Balance Sheet Ahead of Planned Market ExpansionToronto, Ontario--(Newsfile Corp. - August 25, 2022) - 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, announced today a non-brokered private placement of 4,825,715 units of the Company (the \"Units\"), at a premium to market subscription price of CAD$0.14 per Unit, for aggregate gross proceeds of approximately CAD$675,600 (the \"Offering\").Each Unit consists of one (1) common share of the Company (a \"Common Share\") and one Common Share purchase warrant (\"Warrant\"). Each Warrant will be exercisable at CAD$0.30 and entitle the holder thereof to acquire one Common Share for a period of two years from the date of issuance. The use of proceeds will be for operational purposes to support the launch of the Company's proprietary Collateralized Put Options (CPOs) and Collateralized Reference Notes (CRNs). Insiders participated in the Offering subscribing for 1,429,286 Units, and as a result the Offering is considered a \"related party transaction\" within the meaning of Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions (\"MI 61-101\"). DelphX has relied on the exemptions from the formal valuation and minority approval requirements of MI 61-101 contained in sections 5.5(a) and 5.7(1)(a) of MI 61-101 in respect of related party participation, as neither the fair market value of the securities issued to insiders nor the cash consideration paid for such securities exceeded 25% of DelphX's market capitalization. A material change report was not filed more than 21 days prior to closing of the Offering as the participation of insiders in the Offering and the extent of such participation was not finalized until shortly prior to the completion of the Offering.In connection with the Offering, DelphX will pay cash finder's fees of $7,007 and issue 50,050 finders' warrants (the \"Finders' Warrants\") to AlphaNorth Asset Management, an eligible finder. The Finders' Warrants will be exercisable at CAD$0.30 each for a period of two years after issuance.Completion of the Offering is subject to the final approval of the TSXV. The S...