Mr. Patrick Wood reports

DELPHX SIGNS AGREEMENT WITH CASTLE PLACEMENT, LLC TO EXPAND REACH OF CREDIT RATING SECURITY (CRS) PRODUCT

Delphx Capital Markets Inc. has entered into an agreement with Castle Placement LLC 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 chief executive officer 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 and 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.

We seek Safe Harbor.