Ottawa tech firm LeoNovus raises $1.5M in private placement

Cloud

A local cloud software developer says it plans to use a portion of a fresh $1.5-million financing round to advance its expansion into the growing blockchain field.

LeoNovus (TSX-V: LTV) says it’s issuing 30 million units – each consisting of one common share and one warrant entitling the buyer to purchase an additional share – at five cents each, for total proceeds of $1.5 million.

“We continue to get significant interest from enterprise customers regarding our core storage, security and compliance architecture and believe that our Blockchain strategy will further enhance our product offering,” said LeoNovus CEO and chairperson Michael Gaffney in a statement.

LeoNovus develops software that enables a company’s data to be securely hosted across a network cloud storage systems.

The company has not made any sales in its last six quarters. Two weeks ago, LeoNovus managers said in a regulatory filing that it has several proof-of-concept installations and expects to start generating revenues by this fall.

The company had a net loss of US$794,000 in the first six months of 2017.

LeoNovus stocks were up two cents to 8.5 cents per share in late afternoon trading Monday on the TSX Venture Exchange

Interested in blockchain technology? Read reporter Craig Lord’s feature in the new print edition of Techopia.