DelphX Capital Markets has reduced its planned non-brokered financing to up to 8,000,000 units at $0.01 each, for gross proceeds of up to $80,000. The company said the convertible debenture component of the financing it announced on July 20, 2026 will no longer proceed.
The original package had two parts: a unit private placement and a separate non-brokered placement of convertible debentures, which are loans that can later be converted into shares. Only the unit portion survives, and it is the entire raise.
Each unit consists of one common share and one warrant. The warrant allows the holder to buy an additional common share at $0.06 for two years from issuance, six times the price paid for the unit itself. On that basis, full exercise of all 8,000,000 warrants would bring in a further $480,000 — considerably more than the placement itself — but only if the shares trade above the exercise price during the two-year window.
DelphX said it may pay finders' fees to eligible finders, with any details to be disclosed later. The offering requires approval from the TSX Venture Exchange, and the securities will carry a four-month-and-one-day hold period, the standard Canadian restriction on resale of privately placed stock.
Proceeds are earmarked for general corporate purposes. The release gives no breakdown of how the money will be spent.
The size of the raise is the main point here. At a maximum of $80,000, the placement is small even by micro-cap standards, and the reference to "up to" means the actual amount could be lower. The release does not disclose the company's current cash position, monthly spending rate, or outstanding share count, so the dilution implied by 8,000,000 new shares plus the same number of warrants cannot be assessed from the material provided.
Dropping the debenture tranche also removes whatever amount that component would have contributed. The July 20 announcement's terms for the debentures were not restated in the update, and the company did not explain why that portion was abandoned.
DelphX describes itself as a technology and financial services company building structured products distributed through broker-dealers via a special-purpose vehicle, Quantem LLC. Its stated products are collateralized put options and collateralized reference notes tied to corporate bond rating downgrades and cryptocurrency losses, held in custody at U.S. Bank. The release contains no revenue figures or customer numbers for that business.
The company trades on the TSX Venture Exchange and on the OTCQB in the United States.
Source: Newsfile
This article is journalism, not investment advice. It is not an offer or solicitation to buy or sell any security. Micro-cap and penny stocks carry a high risk of loss, including illiquidity and dilution. Do your own research.