OTTAWA, Sept. 14, 2020 (GLOBE NEWSWIRE) -- Leonovus Inc., (“Leonovus” or the “Company”) (TSXV: LTV) further to its news release of August 31, 2020, announces that it entered into a loan agreement with ten shareholders, including two directors, (the “Lenders”) for a secured loan in the principal amount of CAD$395,000 (the “Loan”). The Loan has a term of twelve months and bears interest at the rate of 8% per annum and can be paid down at any time without penalty. The Loan is secured by a general security agreement.
The Lenders received a bonus of 3,160,000 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 Loan. No commission or finder’s fee were paid in connection with the Loan. All bonus securities are subject to a hold period of four months and one day from the date of issuance. The number of securities issued and outstanding at this time is 288,606,639.
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. None of the proceeds will be used for investor relations or paid to related parties other than in the normal course of business operations. Closing of the Loan and bonus shares was subject to approval of the TSXV and customary closing conditions.
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