LeoNovus receives $400,000 for note receivable and announces changes to directors and officers

OTTAWA, Nov. 5, 2016 /CNW/ -- LeoNovus Inc. (TSXV: LTV), announces the resignation of Gordon Campbell as Chair and director.  David Chow agreed to join the board of directors and Michael Gaffney was voted in as Chair of the board of directors and also appointed as Chief Executive Officer. The company very much thanks Mr. Campbell for his significant time and investment into supporting Leonovus since its inception.

Over the past year and a half Dan Willis stepped up as President, Chief Executive Officer and Chief Technology Officer roles. The company acknowledges, with gratitude, his significant effort, responsibility and contribution during this period. Mr. Willis, with these changes, will be able to focus on the major tasks of product management and product development and will relinquish the President & CEO role and again become Vice President and CTO.

Mr. Campbell supported the company's need for cash by purchasing its $400,000 CDN promissory note receivable with SVIRAL Inc. Leonovus also agreed to modify the payment terms of another $400,000 CDN note due to the company from Mr. Campbell, and a company controlled by him. The due date for the loan was changed from October 24, 2016 to February 24, 2017, including small monthly instalments beginning in November 2016.

Mr. Gaffney is a successful serial entrepreneur dating back to the 1980's.  He is a graduate of the University of Ottawa (BSc.) and the John Molson School of Business in Montreal (MBA). From 2004 to 2013 he was CEO of In-Touch Insight Systems.  In 2001 and 2002 he was a co-founder of Soltoro Inc. and ENQ Semiconductor Inc., both of which which were successful start-ups and later sold to larger companies. In 1996 he founded Learnsoft Inc. which then went on to create the world's first private online university which was subsequently sold in 2001. From 1991 to 1996 he was a Vice President at Newbridge Networks. 

Mr. Chow is President and CFO of Stoneworks Technologies Inc., an Ottawa based systems integration and value added reseller company focused on security and cloud products for enterprise customers. David has been developing technology markets and selling into these markets for the past twenty years. The company is pleased to add someone with a strong marketing and sales background to the board of directors. Mr. Chow is a graduate of Queens University with a degree in Economics.

"First of all I would like to thank Dan Willis for his  effort and commitment to the company over the past year. It was a challenging period and Dan was critical to ensuring that the company got to where it is today. I would also like to thank the board for their support and confidence. Currently, we are working on identifying and selling our software defined storage product to a basket of early adopter customers. Our ability to protect corporate data in the cloud is getting a very positive response from storage architects. We are also beginning to leverage our Oracle relationship will announce new programs and services early in 2017", said Michael Gaffney, President and 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.

Michael Gaffney, [phone], [email protected]