OTTAWA, Dec. 8, 2017 /CNW/ - Leonovus Inc. (TSXV: LTV) ("Leonovus" or the "Company") is pleased to announce that it has closed its previously announced bought deal short form prospectus offering, including the exercise of the underwriter's over-allotment option (the "Offering"). In connection with the Offering, the Company issued 27,500,000 units of the Company (the "Units"). The Units were sold at a price of $0.50 per Unit for aggregate gross proceeds of $13,750,000. The Offering was underwritten by a syndicate led by Clarus Securities Inc.
Each Unit consisted of one common share in the capital of the Company and one-half of one common share purchase warrant (each whole common share purchase warrant, a "Warrant"). Each Warrant will entitle the holder thereof to acquire one common share of the Company at a price of $0.65 per share until December 8, 2019.
The net proceeds from the Offering are expected to be used toward (i) debt repayment; (ii) product development; (iii) marketing and promotion; and (iv) working capital. For additional details regarding the use of proceeds of the Offering, please see the Company's final short form prospectus dated December 4, 2017, which is available under the Company's profile on SEDAR at www.sedar.com.
"The closing of the financing puts the company on a very solid foundation for the future. This financing gives us the needed resources to build a powerful business development group and put the final finishes on productizing our powerful blockchain-hardened software defined storage solution', said Michael Gaffney, CEO.
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. Further information on Leonovus' public filings, including its most recent audited consolidated financial statements, are available at 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.
SOURCE LeoNovus Inc.
For further information: George Aizpurua, +1.647.500.2389, [email protected]