Leonovus Announces Closing of $3.44 Million Public Offering of Units
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OTTAWA, May 06, 2021 (GLOBE NEWSWIRE) -- Leonovus Inc. (TSXV:LTV) (the “Company” or “Leonovus”), is pleased to announce the closing of its marketed short form
prospectus offering pursuant to which the Company issued 6,143,572 units of the Company (the “Units”) at a price of $0.56 per Unit for gross proceeds of $3,440,400.32 (the
“Offering”). The Offering was led by Research Capital Corporation as lead agent and sole bookrunner (the “Lead Agent”), on behalf of a syndicate of agents,
including Canaccord Genuity Corp. (collectively with the Lead Agent, the “Agents”).
Each Unit is be comprised of one common share of the Company (a “Common Share”) and one Common Share purchase warrant of the Company (a “Warrant”). Each Warrant is exercisable into one Common Share (a “Warrant Share”) at a price of $0.70 for a period of 36 months following completion of the Offering.
The Company has granted the Agents an option (the “Over-Allotment Option”) to cover over-allotments and for market stabilization purposes, exercisable in whole or in part at the sole discretion of the Agents, at any time up to 30 days from the closing of the Offering, to increase the size of the Offering by up to 15% of the number of Units (and/or the components thereof) sold pursuant to the Offering, on the same terms and conditions of the Offering.
The net proceeds raised under the Offering will be used for product development and management, sales and marketing, operating expenses, and general and administrative expenses as well as for working capital requirements and other general corporate purposes.
The TSX Venture Exchange (“TSXV”) has conditionally accepted the listing of the Warrants. It is anticipated that the Warrants will commence trading on the TSXV under the symbol “LTV.WT” two business days following completion of all listing requirements of the TSXV, and issuance of the TSXV's bulletin confirming the date of listing.
The securities described in this press release have not been and will not be registered under the United States Securities Act of 1933, as amended (“U.S. Securities Act”) or any state securities laws. Accordingly, the securities may not be offered or sold in the United States (as such term is defined in Regulation S under the U.S. Securities Act) or to, or for the account or benefit of, a U.S. person (as such term is defined in Regulation S under the U.S. Securities Act) except pursuant to transactions exempt from registration under the U.S. Securities Act and under the securities laws of any applicable state. This press release does not constitute an offer to sell or a solicitation of an offer to buy any of these securities in the United States. Any public offering of securities in the United States must be made by means of a prospectus containing detailed information about the company and management, as well as financial statements.