Leonovus Closed $13,75 Million Bought Deal

Leonovus Inc. closed its previously announced bought deal short form prospectus offering, including the exercise of the underwriter’s over-allotment option.

In connection with the offering, the company issued 27,500,000 units of the company. The Units were sold at a price of $0.50 per unit for aggregate gross proceeds of $13,750,000. The offering was underwritten by a syndicate led by Clarus Securities Inc.

Each unit consisted of one common share in the capital of the company and one-half of one common share purchase warrant (each whole common share purchase warrant). Each warrant will entitle the holder thereof to acquire one common share of the company at a price of $0.65 per share until December 8, 2019.

The net proceeds from the offering are expected to be used toward (i) debt repayment; (ii) product development; (iii) marketing and promotion; and (iv) working capital.

“The closing of the financing puts the company on a very solid foundation for the future. This financing gives us the needed resources to build a powerful business development group and put the final finishes on productizing our powerful blockchain-hardened software defined storage solution,” said Michael Gaffney, CEO.