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LeoNovus Closes Concurrent Institutional Brokered And Non-Brokered Private Placement


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

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