After going two quarters without any sales, data storage firm LeoNovus (TSX-V: LTV) says a software licence agreement with a Silicon Valley-based chip design company is the first step towards raising an estimated $1.3 million by the end of next month.
The sale to Soft Machines Inc. - which itself was purchased by Intel last week for $300 million - is worth $330,000, Ottawa-based LeoNovus said in a statement.
The local firm added that it expects to receive a further $1 million in director and corporate loans by the end of October.
"These funds are critical to the development of our direct and channel sales programs," Dan Willis, CEO and chief architect of LeoNovus, stated.
LeoNovus develops software that manages and stores large volumes of unstructured data.
The company’s revenues fell by more than half in 2015 to $104,000, leading to a net loss of $1.88 million for the year.
LeoNovus failed to generate any revenue in the first six months of this year, according to regulatory filings.