Business
LeoNovus Closes Private Placement Offering
Gross Proceeds are over CDN $2 million SUNNYVALE, Calif. , Jan. 21, 2014 /CNW/...
About this update from Leonovus Inc.
[{"type":"text","content":"\n\nGross Proceeds are over CDN $2 million\n\n\nSUNNYVALE, Calif., Jan. 21, 2014 /CNW/ - LeoNovus® Inc. (\"LeoNovus\" or the \"Company\") (TSXV: LTV), a leading Internet and distributed cloud provider with its SMART Media® Platform and distributed Cloud announced today the closing of a non-brokered private placement for gross aggregate proceeds of CDN$2,231,000 (the \"Offering\") based on the sale of 9,700,000 units (the \"Units\") priced at CDN$0.23 per Unit. Each Unit is comprised of one (1) common share in the capital of the Company (the \"Common Share\") and one (1) Common Share purchase warrant (the \"Warrants\") entitling the holder to purchase one (1) Common Share for a period of two (2) years from the closing date of the Offering (the \"Warrant Expiry Date\") at an exercise price of CDN $0.40 per Common Share, provided that if after four months and one day following the closing date, the weighted average trading price of a Common Share on the principal market on which such shares trade is equal to or exceeds $0.65 for 10 consecutive trading days (the 10th such trading date being the \"Eligible Acceleration Date\"), the Warrant Expiry Date shall be changed to the date which is 30 calendar days following the date a formal notice is issued by the Company announcing the reduced warrant term, provided such notice is sent to all warrant holders no more than five business days following the Eligible Acceleration Date. In connection with the Offering, the Company has agreed to pay a cash finder's fee to an arm's length party in the amount of $37,260. The securities issued pursuant to the Offering are subject to a four (4) month and one (1) day hold period from the date of issuance. The Company expects to use the proceeds from the Offering to fuel its growth in the hospitality market as well as other new market areas. Completion of the Offering is subject to regulatory approval, including final acceptance and approval of the TSX Venture Exchange.\nPinetree Capital, Ltd. (\"Pinetree\") has purchased 4,000,000 Units (41.24% of the Offering). One of the directors of the Company is a senior officer of Pinetree. In its consideration and approval of the Offering and the subscription by Pinetree, the Company's board of directors (the \"Board\") took note of the fact that the subscription to the Offering by Pinetree is a relate...