DelphX Signs Agreement with Castle Placement, LLC to Expand Reach of Credit Rating Security (CRS) Product

Toronto, Ontario–(Newsfile Corp. – March 19, 2024) – 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, is pleased to announce that it has entered into an agreement with Castle Placement, LLC (“Castle”) to accelerate the market exposure and use of the […]

March 19, 2024

Toronto, Ontario–(Newsfile Corp. – March 19, 2024) – 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, is pleased to announce that it has entered into an agreement with Castle Placement, LLC (“Castle”) to accelerate the market exposure and use of the DelphX Credit Rating Security (“CRS”) product, effective March 16, 2024. Castle is a leading global private capital investment bank, with access to over 600,000 accredited investors and 64,500 institutional, private equity, venture capital and strategic investors, family offices, pension funds, foundations, endowments, sovereign wealth funds, hedge funds and lenders.

Castle will provide a variety of services to support the launch of the CRS product and facilitation of trades, including additional due diligence and vetting of procedures and guidelines to promote faster adoption. Most importantly, Castle will use its vast network of relationships to assist with the discovery, negotiation, pricing and execution of transactions with respect to both Collateralized Put Options (CPOs) and Collateralized Reference Notes (CRNs), and may act as a placement agent for certain transactions.

The agreement provides for revenue sharing on all CRS transactions sourced through Castle. To further support DelphX, Castle will assist the Company with respect to future capital raising.

“Our aligning with Castle gives us instant access to their impressive institutional investor network, which they have been building since 2009,” said DelphX CEO Patrick Wood. “In addition to their New York headquarters, Castle also has offices in Boston, Dallas, Detroit, Houston, Los Angeles, Miami, and Washington, D.C. Because our CRS product requires two sides for every trade (a CPO & CRN), having access to such a large pool of potential users can lead to far greater transaction volume. The timing could not be better, as Castle has the network and experience to accelerate our product introduction cycle at a time when the market is highly receptive to rating change protection. We appreciate this vote of confidence in our CRS solution, and look forward to working with the Castle team.”

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 or rating downgrade protection for underlying corporate, municipal and sovereign securities;
  • Collateralized reference notes (CRNs) that enable credit investors to take on the default or rating downgrade 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.

Patrick Wood, Chief Executive Officer
DelphX Capital Markets Inc.
patrick.wood@delphx.com

Mark Forney, Corporate Development
DelphX Capital Markets Inc.
mark.forney@delphx.com

(718) 509-2160

Forward-Looking Statements

This news release contains certain “forward-looking statements” including, without limitation, statements regarding the launch of the DelphX platform. Such forward-looking statements involve risks and uncertainties, both known and unknown, that may cause actual results or events to be materially different from those expressed or implied by such forward-looking statements, including but not limited to, business, economic and capital market conditions, regulatory uncertainties, and the demand for our products. The forward-looking statements in this news release are based on factors and assumptions regarding, among other things, the state of the capital markets, the ability of DelphX to successfully manage the risks inherent in pursuing business opportunities in the financial services industry, and the ability of DelphX to obtain qualified staff, equipment and services in a timely and cost-efficient manner to develop its business. Any forward-looking statement reflects information available to DelphX as of the date of this news release and, except as may be required by applicable laws, DelphX undertakes no intent or obligation to update or revise any forward-looking statement, whether as a result of new information, future events or results or otherwise.

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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