DelphX Announces Warrant Amendment and Extension

Toronto, Ontario–(Newsfile Corp. – May 25, 2021) – DelphX Capital Markets Inc. (TSXV: DELX) (“DelphX“) announces that it intends to seek approval of the TSX Venture Exchange to amend the exercise price and extend the exercise period of share purchase warrants (the “Warrants“) issuable upon the conversion of $620,000 principal amount of secured convertible debentures (the “Debentures“). The Debentures are convertible into one common share and one Warrant for each $0.15 of the principal amount outstanding, with each Warrant exercisable for one common share at a price of $0.20 per share. The Debentures are convertible into an aggregate of 4,133,334 common shares and 4,133,334 Warrants. The Debentures were issued pursuant to a private placement announced September 4, 2019. DelphX proposes to amend the exercise price of the Warrants to $0.24 per share, being the last closing price of common shares of DelphX on the TSX Venture Exchange, and extending the exercise period of the Warrants by two years to May 31, 2023.

All other terms and conditions of the Warrants will remain unchanged. The Warrant amendment and extension is subject to acceptance by the TSX Venture Exchange.

A total of $500,000 principal amount of Debentures, and 3,333,334 underlying Warrants are held by parties who are considered to be “related parties” of DelphX. Therefore, the amendment of Warrants 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 Warrants does not exceed 25% of the market capitalization of DelphX.

About 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.

Contact:

Patrick Wood, President & CEO
DelphX Capital Markets Inc.
P: 416.473.9133
E: patrick.wood@delphx.com

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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