Leonovus Closes $1.3 Million Financing Round to Fuel Growth
OTTAWA, March 10, 2017 (GLOBE NEWSWIRE/KOREA IT TIMES) -- Leonovus® Inc. (“Leonovus”) (TSXV:LTV) announces today it has raised gross proceeds of $1.3 million in the initial closing of its previously announced non-brokered private placement for units of the Company at a price of CDN $0.05 per Unit (the “Offering”). Each Unit is comprised of one common share in the capital of the Company (a “Common Share”) and one Common Share purchase warrant (a "Warrant"). Each Warrant is exercisable into one Common Share at a price of CDN $0.10 per Common Share for a period of 24 months from the date of issuance.
The initial closing raised gross proceeds of $1.3 million through the issuance of 26,000,000 Units. The Common Shares and Warrants issued pursuant to the Offering are subject to a four (4) month and one (1) day hold period from the date of issuance. Completion of the Offering is subject to final acceptance and approval of the TSX Venture Exchange.
In connection with the initial closing, LeoNovus will pay an aggregate of $78,000 in cash and issue 1,560,000 Warrants as finder’s fees. The Warrants bear the same terms and conditions as the Warrants issued in the Offering and are subject to a four (4) month and one (1) day hold period from the date of issuance.
“The proceeds will be allocated towards working capital and to fuel sales growth. Leonovus is in active discussions to begin software trials with several financial institutions, colleges, police forces and government departments. We hope to have at least five large enterprises installing our powerful security and compliance solution for bulk and archival data that needs to be stored in an on-premises, cloud, hybrid-cloud or multi-cloud architecture by the end of March. The Leonovus software defined object storage solution, based on what our prospects are saying, is quite unique in the market and fills a real need,” said Michael Gaffney, chairman and CEO of Leonovus.
Leonovus is a cloud solutions software provider that offers the leading software-defined object storage solution (SDOSS) and governance, risk management and compliance (GRC) solution for the modern enterprise. Designed with the IT manager in mind, Leonovus’ patented algorithms virtualize, transform, slice and disperse data across a network of on-premises, hybrid or multi-cloud storage nodes – allowing for the most secure yet internally accessible form of object-based data storage that provides GRC across the entire solution. The advanced geo-distributed architecture minimizes latency, optimizes geo-availability, reduces remote backup costs and meets data sovereignty requirements. With its software and hardware agnostic design, Leonovus provides Petabyte scalability and allows the enterprise to utilize its existing idle storage resources, extend the useable lifespan of depreciated resources and improve the enterprise’s overall ROI.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This press release may contain forward-looking statements and information, which may involve risks and uncertainties. The results or events predicted in these statements may differ materially from actual results or events. Factors that might cause a difference include, but are not limited to, competitive developments, risks associated with LeoNovus’ growth, the state of the financial markets, regulatory risks and other factors. There can be no assurance or guarantees that any statements of forward-looking information contained in this release will prove to be accurate. Actual results and future events could differ materially from those anticipated in such statements. These and all subsequent written and oral statements containing forward-looking information are based on the estimates and opinions of management on the dates they are made and expressly qualified in their entirety by this notice. Unless otherwise required by applicable securities laws, LeoNovus disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Readers should not place undue reliance on any statements of forward-looking information that speak only as of the date of this release.