Leonovus Inc. Announces a $445,000 Bridge Loan

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.