DelphX Announces $488,000 Non-Brokered Private Placement

Toronto, Ontario--(Newsfile Corp. - December 2, 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 private placement of 5,422,221 units (the "Units") at a subscription price of C$0.09 per Unit, for gross proceeds of C$488,000 (the "Offering"). Each Unit consists of one common share ("Common Share") and one Common Share purchase warrant ("Warrant"). Each Warrant entitles the holder to purchase one Common Share at a price of $0.15, for a period of two years from the date of issuance.

Insiders participated in the Offering subscribing for 1,611,111 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.

Completion of the Offering is subject to the final approval of the TSX Venture Exchange. The securities issued pursuant to the Offering will be subject to a hold period of four months and a day from the date of issuance.

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

DelphX also confirms that, further to its news release of August 25, 2022, it has closed its previously announced private placement of 4,825,715 Units, at a subscription price of C$0.14 per Unit, for aggregate gross proceeds of C$675,600, with each Unit consisting of one Common Share and one Common Share purchase warrant entitling the holder to purchase one Common Share at a price of C$0.30, for a period of two years from the date of issuance.

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 will 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 for underlying corporate, municipal and sovereign securities;

• Collateralized reference notes (CRNs) that enable credit investors to take on the default 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 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.
[email protected]
(718) 509-2160

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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