Mr. George Wentworth reports

DELPHX ANNOUNCES WARRANT EXTENSION

Delphx Capital Markets Inc. intends to seek approval of the TSX Venture Exchange to extend the exercise period of share purchase warrants.

Delphx intends to seek approval of the TSX Venture Exchange to extend the exercise period of a total of 5,430,250 share purchase warrants, all of which are exercisable at 15 cents per common share. The warrants were issued pursuant to a private placement announced June 29, 2023. Delphx proposes to extend the expiry date for these warrants by one year to June 29, 2026.

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

A total of 5,055,250 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 TSX-V 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 per cent of the market capitalization of Delphx.

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 provide mitigation of spread and capital charge losses when downgrades occur, while allowing for attractive returns. 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 rating downgrade protection for underlying corporate bonds;
• Collateralized reference notes (CRNs) that enable investors to take on a capped rating downgrade exposure of an underlying security in exchange for attractive returns.

All CPOs and CRNs are fully collateralized and held in custody by U.S. Bank. CPOs and CRNs are proprietary products created and owned by Delphx Capital Markets.