OTTAWA, Aug. 31, 2020 (GLOBE NEWSWIRE) -- Leonovus Inc., (“Leonovus” or the “Company”) (TSXV: LTV) announces that it plans to enter into a loan agreement with eleven shareholders, including two directors, (the “Lenders”) for a secured loan in the principal amount of up to CAD$445,000 (the “Loan”). The Loan will have a term of 12 months and will bear interest at the rate of 8% per annum and can be paid down at any time without penalty. The Loan will be secured by a general security agreement.
Upon approval of the TSX Venture Exchange (the “TSXV”), the Lenders shall also receive a bonus of up to 3,560,000 common shares (the “Bonus Shares”) of the Company at a deemed issue price of CAD$0.025 per share, representing 20% of the net amount of the total planned Loan. No commission or finder’s fee will be paid in connection with the Loan. All bonus securities will be subject to a hold period of four months and one day from the date of issuance.
The Company intends to use the proceeds of the Loan for bridge working capital and plans to complete a private placement by the end of November 2020. Closing of the Loan and bonus shares is subject to approval of the TSXV and customary closing conditions.
Michael Gaffney Chair & CEO, stated, “We are very pleased to have the Loan and the support from these key shareholders. We continue to promote our Consolidata COVID data lake solution to federal and provincial governments, and we expect final testing of our Smart Filer and Vault solution to start in September with a major federal department. This Loan is intended as a bridge to a larger financing in the October/November timeframe. Also, the third leg of our product development cycle will be announced early in Q4.”
About Leonovus
Leonovus is a software provider that offers storage solutions that untether your data, allowing you to embrace cloud storage securely, simply and cost-effectively while giving you the flexibility to deal with the ever-evolving cloud storage landscape.
Leonovus Smart Filer is an information lifecycle management (ILM) solution that analyzes existing file storage and extends its capacity automatically and transparently. According to customer-defined policies, infrequently accessed files are automatically removed from high-cost, high-performance primary storage, and placed in secondary or cloud storage, without any changes to how users and applications access them.
Designed with the IT manager in mind, Leonovus Vault uses patented algorithms to analyze, classify, encrypt, shred and spread 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 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, Vault provides petabyte scalability. It allows the enterprise to use its existing idle storage resources, extend the useable lifespan of depreciated resources and improve the enterprise's overall ROI.
To learn more, please visit www.leonovus.com.
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.
For More Information, please contact:
George Pretli
Chief Financial Officer
gpretli@leonovus.com