DelphX Enters into Business Consultant Agreement with Cardiff Associates to Accelerate Commercialization Timeline Toronto, Ontario--(Newsfile Corp. - April 26, 2023) - 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, announces that the Company has today entered into a business consultant agreement with Cardiff Associates ("Cardiff"), a US-based organization that specializes in financial services development. Cardiff will provide comprehensive advisory services to support the implementation of the DelphX business strategy, specifically relating to proprietary products addressing rating changes, and corporate downgrade and upgrade structures. As a reminder, DelphX recently introduced a novel Credit Rating Security (CRS) product, which represents an industry-first solution that gives bond holders and traders the ability to position against potential rating changes on existing bonds. Under the terms of the agreement, Cardiff will receive 1MM options with a two-year maturity and an exercise price of $0.15 per common share; along with the right to gain additional compensation by achieving the following major milestones: - The first commercial transaction by a new customer on the DelphX platform;
- Establishment of a DelphX network, platform, or other structure capable of providing consistent liquidity for DelphX products and/or services, as defined by gaining four (4) or more market makers on fifty (50) or more underlying names;
- Establishment of a stable, scalable issuance mechanism for DelphX products and/or services (e.g., reducing corporate issuance and settlement process from T+3 to T+2, T+1, and/or inter-day);
- The first commercial sale of a DelphX index product/service;
- The first commercial sale of a DelphX asset management wrapper product encompassing a DelphX index product or service.
"Individually these are all major milestones for us, but collectively they are a company-maker because they would represent the establishment of a new market to support one of the world's largest asset class," explained DelphX CEO Patrick Wood. "Teaming with Cardiff gives us access to advisors with decades of experience in the global financial markets, both operationally and at the board level of some of the industry's leading international investment banks. Most importantly, we will be teaming with true fintech, banking and structured product experts who are actively shaping the standards and infrastructure that form the backbone of today's global financial systems. We expect this to be a transformative relationship and appreciate this vote of confidence from an organization that is at the forefront and who can lead us to rapid deployment and adoption."
About DelphX Capital Markets Inc. Principal Business and Stated Business Objectives
DelphX is a financial innovation company that has designed two new private placement securities to provide protection for investors against losses in the fixed-income market. The Company operates the issuance of its proprietary products under a wholly-owned special-purpose vehicle called “Quantem”. The development of these two new securities is the result of a multi-year collaboration with bond investment and trading companies, who have seen a diminishing ability to protect against risks associated with rating changes, in an industry that is receptive to new solutions and novel alternatives.
This problem is significant because it causes institutional investors, banks, dealers, pension funds, and insurance companies to tie up additional capital to offset potential liabilities within their existing portfolios.
To solve these problems, DelphX created two proprietary private placement securities solutions that offer both secure risk protection and enhanced returns for currently issued underlying bonds: Collateralized Put Options (“CPOs”) and Collateralized Reference Notes (“CRNs”).
CPOs, are private placement securities that allow loss protection on spread changes associated with rating changes.
CRNs, are private placement securities that collateralize a maximum liability on CPO protection and pay materially-enhanced returns.
All CPOs and CRNs are issued by Quantem, collateralized by US Treasuries and held in custody by BNY Mellon.
At no time does DelphX (or Quantem) hold any securities or funds on behalf of third parties.
The Company’s primary business objective has been to develop a sustainable revenue model by using novel products and technologies to solve major unmet problems in the bond market – with an emphasis on providing loss protection and boosting returns in portfolios.
DelphX has officially launched its products to the institutional buy-side and broker-dealer community and anticipates adoption and monetization forthwith, especially as economic and market conditions continue to demonstrate the need for credit downgrade protection. For more information about DelphX, please visit https://delphx.com/. Mark Forney, Corporate Development
DelphX Capital Markets Inc.
mark.forney@delphx.com
(718) 509-2160 |