DelphX Capital Markets Inc. said it intends to offer up to 7,142,860 units at 70 Canadian cents per unit in a nonbrokered private placement, for total gross proceeds of up to C$5 million.
Each unit will comprise one common share and half of one share purchase warrant. Each warrant will allow the holder to buy one common share at C$1.00, for a period of two years from the offer closing date.
DelphX may reduce the remaining exercise period of these warrants to not less than 30 days, in case the closing price of the common shares is C$1.30 or higher for 20 consecutive trading days at any time after the offer closes.
The company may pay cash finder's fees of up to 7% of the gross proceeds and may also issue finders' warrants of up to 7% of the units placed. These warrants will be exercisable at 70 Canadian cents for a period of two years after the offering closes. The units issued under the offering will be subject to a hold period of four months and a day starting from the date of offer closing.
DelphX plans to use the net proceeds from the offering for general corporate purposes and working capital.