DelphX Capital Markets Inc. (TSXV: DELX) announced today that it intends to proceed with a non-brokered private placement of up to 7,142,860 units at a subscription price of C$0.70 per Unit, for gross proceeds of up to C$5,000,000. Each Unit will consist of one Common Share and one-half-of-one share purchase warrant. Each Warrant will entitle the holder to purchase one Common Share at a price of $1.00, for a period of 2 years from the date of closing, provided that in the event the closing price of the Common Shares on the TSX Venture Exchange is equal to or greater than $1.30 per share for 20 consecutive trading days at any time following closing, DelphX may, by notice to the Warrant holders (which notice may be by way of general news release), reduce the remaining exercise period of the Warrants to not less than 30 days following the date of such notice.
In connection with the Offering, DelphX may pay to eligible finders cash finder’s fees of up to 7% of the gross proceeds received and may issue finders’ warrants of up to 7% of the Units placed. The Finders’ Warrants will be exercisable at $0.70 each for a period of 2 years after closing.
Completion of the Offering is subject to the approval of the TSX Venture Exchange. The securities issued under the Offering will be subject to a hold period of four months and a day from the date of closing.
The Units have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This press release does not constitute an offer to sell or the solicitation of an offer to buy the securities herein described, and shall not constitute an offer, solicitation or sale in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of that jurisdiction.
DelphX intends to use the net proceeds from the Offering for working capital and general corporate purposes.