LeoNovus Announces the Initial Closing of its Private Placement
Gross Proceeds of Over CDN $1 Million
SUNNYVALE, Calif., Sept. 28, 2012 /CNW/ - LeoNovus Inc. ("LeoNovus" or the "Company") (TSX-V: LTV), announced today it has raised gross proceeds of CDN $1,029,375 in an initial closing of its previously announced non-brokered private placement (the "Offering") of up to 20,000,000 units ("the Units") at a price of CDN $0.15 per Unit. Each Unit consists of one (1) LeoNovus Common Share and one (1) Common Share purchase warrant entitling the holder to purchase one (1) LeoNovus Common Share for a period of two (2) years from the closing date of the Offering at an exercise price of CDN $0.24 per Common Share. This initial closing raised gross proceeds of $1,029,375 through the issuance of 6,862,500 Units. The securities to be 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 this initial closing and the Offering is subject to final acceptance and approval of the TSX Venture Exchange ("TSXV").
In connection with this initial closing, an aggregate of CDN $82,350 in cash fees and 549,000 broker warrants will be paid to Fin-XO Securities Inc. as a finder's fee. The broker warrants entitle the holder to purchase one (1) LeoNovus Common Share for a period of two (2) years from the date of issue at an exercise price of CDN $0.15 per Common Share.
Proceeds of the Offering will be used for working capital including the sales and marketing of the LeoNovus Connected TV product and the launch of its next generation technology.
LeoNovus is developing a high performance browser-based Internet software platform with a managed system that will provide consumer electronic devices such as HDTVs access to all the features, content, and functionality available on the Internet without the malware, security and support issues of a PC.
About LeoNovus Inc. (www.LeoNovus.com)
LeoNovus is developing a high performance browser-based Internet platform with a managed system approach that will provide HDTVs and other consumer electronic devices with access to all the features, content, and functionality available on the Web without the malware, security and support issues of a PC. LeoNovus seeks to change the way high-value Internet content is organized, monetized, and delivered on HDTVs, providing a true consumer electronics experience to the largest monitor in the house.
The securities offered in the Financing have not been and will not be registered under the U.S. Securities Act as amended, or any state securities laws, and may not be offered or sold in the United States absent registration or an applicable exemption from such registration requirements. This press release shall not constitute an offer to sell, or the solicitation of an offer to buy the securities in the United States or in any jurisdiction in which such offer, sale or solicitation would be unlawful.
LeoNovus shares have traded on the TSX Venture Exchange since June 10, 2009. Further information about LeoNovus can be found in its filings with Canadian securities regulators, which filings are available at http://www.sedar.com
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.
Certain information included in this press release is forward-looking and 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. Forward-looking statements included or incorporated by reference in this press release include statements with respect to proposed terms of, and the intended use of proceeds of, the Offering. There can be no assurance 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 are cautioned not to place undue reliance on any statements of forward-looking information that speak only as of the date of this release. More detailed information about potential factors that could affect LeoNovus' financial and business results is included in public documents LeoNovus files from time to time with Canadian securities regulatory authorities and which are available at www.sedar.com.
All trademarks and brands mentioned in this release are the property of their respective owners.
SOURCE: LeoNovus Inc.For further information:
T: (408) 541-9400, F: (408) 541-9410, IR@LeoNovus.com, Jim Fredrickson, Chief Financial Officer