Ottawa’s Leonovus raises $2.2M through exercised warrants

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Leonovus (TSX-V:LTV) says it’s in a stronger financial position thanks to investors exercising a crop of warrants in recent months.

The Ottawa-based software firm, which develops distributed data storage solutions, has raised slightly more than $2.2 million since Sept. 30 on share warrants that were set to expire before March 20. Chief executive Michael Gaffney said in a statement that 92 per cent of these warrants, which entitle existing investors to purchase additional stake in the company at a set price, were exercised before expiration.

Leonovus currently has 13.75 million outstanding warrants set to expire on Dec. 8, 2019, which could see the firm bring in as much as $8.9 million if exercised before then.

Shares of Leonovus crept up one cent on the TSX Venture Exchange this week, trading at 15 cents by market close. The company’s stock took a five-cent hit in February following news it had been the victim of bank fraud, with the scam costing the firm US$571,000. Leonovus said at the time it was awaiting news whether its insurance would cover the firm for the loss.