Leonovus Closing $3.44 Million Public Offering of Units

Leonovus Inc. announced the closing of its marketed short form prospectus offering pursuant to which the company issued 6,143,572 units of the company at a price of $0.56 per unit for gross proceeds of $3,440,400.32.

The offering was led by Research Capital Corporation as lead agent and sole bookrunner, on behalf of a syndicate of agents, including Canaccord Genuity Corp.

Each unit is be comprised of one common share of the company and one common hhare purchase warrant of the company. Each warrant is exercisable into one common 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 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 2 business days following completion of all listing requirements of the TSXV, and issuance of the TSXV’s bulletin confirming the date of listing.