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Press release from CNW Group

LeoNovus Closes Concurrent Institutional Brokered And Non-Brokered Private Placement

Tuesday, August 20, 2013

LeoNovus Closes Concurrent Institutional Brokered And Non-Brokered Private Placement

22:13 EDT Tuesday, August 20, 2013

D&D Securities Inc., Lead Agent and Power One Capital Markets as co-Agent, deliver on a successful close increasing visibility for LeoNovus and its technology in the Capital Markets

SUNNYVALE, Calif., Aug. 20, 2013 /CNW/ - LeoNovus Inc. ("LeoNovus" or the "Company") (TSX-V: LTV) a leading Internet technology developer with its multi-dimensional SMART Media Software Platform™ and SMART Networks™, is pleased to announce it has raised aggregate gross proceeds of CDN $2,402,799.92 in the closing of its concurrent brokered and non-brokered private placement (the "Offering"). The aggregate gross proceeds are raised through the issuance of 14,134,116 Units. Each Unit consists of one (1) LeoNovus Common Share priced at CDN $0.17 and one (1) Common Share purchase warrant entitling the holder to purchase one (1) LeoNovus Common Share for a period of two (2) years from the closing date of the Offering at an exercise price of CDN $0.30 per Common Share, provided that if, after four months and one day following the closing date of the Offering, the weighted average trading price of the Corporation's Common Shares is equal to or exceeds $0.60 for 20 consecutive trading days (with the 20th such trading date hereafter referred to as the "Eligible Acceleration Date"), the warrant expiry date may be changed to the date which is 30 calendar days following the date a formal notice is issued by the Corporation 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. 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. Both the brokered and non-brokered private placements are subject to the final approval of the TSX Venture Exchange.

In connection with this closing, an aggregate of CDN $155,121.66 in cash fees and 1,107,794 broker warrants units will be paid to D&D Securities Inc. as Lead Agent and Power One Capital Markets as co-Agent for agent's expenses, commissions and finder's fees. The non-brokered portion has a cash fee of $34,880.99 and 205,182 broker warrants issued in respect of finder's fees entitle the holder to purchase one (1) LeoNovus Common Share for a period of two (2) years from the date of issue at an exercise price of CDN $0.17 per Common Share. The 1,107,794 broker warrants issued in respect of agent's commission entitle the holder to purchase one Unit for a period of two (2) years from the date of issue at an exercise price of CDN $0.17 per Unit. Proceeds of the Offering will be used for working capital including the ramp of its distributed network offering Cloud Services at the Edges including storage and compute cycles to residential and hospitality markets.

LeoNovus is developing a high performance browser-based Internet software platform with a remotely managed system in the cloud as the point of presence to service just-in-time services for the HDTV, hospitality and healthcare markets including its SMART Networks that lowers cost while delivering new revenue sources via its geo-dispersed distributed network. This innovative offering delivers Cloud Services at the Edges including storage and extremely efficient compute cycles that leverage distributed dark core resources for super computer processing capabilities.

About LeoNovus Inc. ( www.LeoNovus.com )

LeoNovus Inc., offers a unique technology approach to a diverse group of markets that require efficient processing, preservation, and accurate management of immense amounts of data with the benefit of significant energy and real-estate cost reductions, while at the same time offering companies and organizations within these markets the ability to create new revenue streams. Currently, LeoNovus has made inroads into the Internet, data center, hospitality, and health care markets. The LeoNovus Software platform also supports connected devices with access to all the features, content, and functionality available on the Web without the malware, security and support issues of a PC. LeoNovus seeks to change the way high-value Internet content is organized, monetized, and delivered to end users. Learn more at www.LeoNovus.com

­­­­The securities offered in the Financing have not been and will not be registered under the U.S. Securities Act as amended, or any state securities laws, and may not be offered or sold in the United States absent registration or an applicable exemption from such registration requirements. This press release shall not constitute an offer to sell, or the solicitation of an offer to buy the securities in the United States or in any jurisdiction in which such offer, sale or solicitation would be unlawful.

LeoNovus shares have traded on the TSX Venture Exchange since June 10, 2009. Further information about LeoNovus can be found in its filings with Canadian securities regulators, which filings are available at http://www.sedar.com

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Certain information included in this press release is forward-looking and may involve risks and uncertainties. The results or events predicted in these statements may differ materially from actual results or events. Factors that might cause a difference include, but are not limited to, competitive developments, risks associated with LeoNovus' growth, the state of the financial markets, regulatory risks and other factors. Forward-looking statements included or incorporated by reference in this press release includes statements with respect to proposed terms of, and the intended use of proceeds of, the Offering. There can be no assurance that any statements of forward-looking information contained in this release will prove to be accurate. Actual results and future events could differ materially from those anticipated in such statements. These and all subsequent written and oral statements containing forward-looking information are based on the estimates and opinions of management on the dates they are made and expressly qualified in their entirety by this notice. Unless otherwise required by applicable securities laws, LeoNovus disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Readers are cautioned not to place undue reliance on any statements of forward-looking information that speak only as of the date of this release. More detailed information about potential factors that could affect LeoNovus' financial and business results is included in public documents LeoNovus files from time to time with Canadian securities regulatory authorities and which are available at www.sedar.com.

LeoNovus Inc.
TSX Venture Exchange Symbol: LTV
1196 Borregas Ave. Suite 201
Sunnyvale, CA 94089 USA
Phone: (408) 541-9400 (US-PST)
Fax: (408) 548-9910
www.LeoNovus.com
Email: IR@LeoNovus.com

SOURCE: LeoNovus Inc.

For further information:

Jim Fredrickson, Chief Financial Officer, (408) 541-9400, (408) 541-9410 (fax), IR@LeoNovus.com

http://www.LeoNovus.com

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