Belgravia Hartford signs non-binding LOI with Delphx

Executive Summary

• Belgravia Hartford Capital Inc. has signed a non-binding Letter of Intent (LOI) with Delphx Capital Markets Inc. to collaborate on the first commercial Quantem Collateralized Security (QCS) transaction.
• Belgravia is expected to become the first corporate purchaser of a QCS collateralized put option, a product designed to protect and preserve corporate Bitcoin treasury holdings.
• Belgravia will provide advisory and structuring support to Delphx, including assistance with program documentation, compliance processes, and onboarding coordination.

Key Details

• Parties Involved: Belgravia Hartford Capital Inc. (TSX Venture: BELX / OTCQB) and Delphx Capital Markets Inc. (TSX Venture: DELX).
• Transaction Structure: Non-binding Letter of Intent (LOI). The LOI is non-binding except for customary confidentiality, regulatory compliance, and public disclosure provisions, and may be terminated by either party at any time.
• Core Objective: Execution of the first commercial QCS transaction where Belgravia purchases a collateralized put option to hedge Bitcoin treasury risk.
• Belgravia's Role: Providing advisory and structuring support to Delphx, including assistance with program documentation, compliance processes, and onboarding coordination with the designated placement agent.
• Delphx Product Details:
  • Collateralized Put Options (CPOs): Provide secured protection against rating downgrades of corporate bonds and/or losses in cryptocurrency holdings.
  • Collateralized Reference Notes (CRNs): Enable investors to assume capped downgrade or cryptocurrency-loss exposure in exchange for attractive returns.
  • Collateralization: All CPOs and CRNs are fully collateralized and held in custody by U.S. Bank.
• Conditions Precedent: The transaction is subject to negotiation and execution of definitive documentation, regulatory approvals, market conditions, and other customary closing conditions.
• Risk Disclosure: There can be no assurance that the transaction contemplated by the LOI will be completed.

Notable Quotes

• None explicitly quoted in the text, though the release notes the strategic intent: "Belgravia is expected to become the first corporate purchaser of a QCS collateralized put option, designed to protect and preserve corporate bitcoin treasury holdings."