OTTAWA, May 21, 2019 /CNW/ - LEONOVUS INC. ("Leonovus") (TSXV: LTV) (OTC: LVNSF) is pleased to announce that DIGIMAX GLOBAL SOLUTIONS ("DigiMax") (CSE: DIGI) has been appointed as Business Development Consultant by Leonovus. The purpose of the appointment is to assist Leonovus in preparing to issue a Digital Security Offering ("DSO"), also commonly called a Security Token Offering ("STO") in the United States and in other selected global jurisdictions. 

DigiMax will take all steps necessary to assist Leonovus to prepare the requisite information to attract a syndicate of registered Broker/Dealers to raise approximately USD 25,000,000 (the "Target Amount") into Leonovus (the "Private Placement") for the Galaxa project. These consulting services include the recruitment of a Lead United States based licensed Broker/Dealer of Securities and other selling syndicate partners registered in their respective countries (collectively the "Syndicate"). DigiMax will earn a consulting fee of USD 437,500 on a percentage of completion basis of the Target Amount plus a work fee of USD 15,000.

The scope of work includes recruiting and assisting Leonovus to enter into a direct engagement between Leonovus and a Lead Registered Broker/Dealer in the United State; recruit other potential registered broker/dealers from around the world to work directly with Leonovus and the Lead Broker/Dealer.

Leonovus previously announced the engagement of RockTree Capital Management Limited ("RockTree") of Beijing and New York to provide certain placement services to the Company in connection with its planned DSO/STO. DigiMax intends to work closely with Rocktree and build a larger investment syndicate. DigiMax will not perform any functions that require registration with securities regulators anywhere around the world.

"DigiMax is excited to be able to work with Leonovus to create a global network of registered broker/dealers that can raise the funds for the DSO/STO being offered by Leonovus for their Galaxa project," said Chris Carl, DigiMax CEO. "By working as part of the Leonovus team, DigiMax can assist in ensuring Leonovus is working with the highest quality broker/dealers knowledgeable in the Digital Security industry," said Carl.

"I believe that Leonovus is at the forefront of the tokenization of securities. Indeed, our vision of the Galaxa project could not be achieved without tokenization. The evolution from the crowd-funding nature of ICOs (Initial Coin Offerings) of the last several years to full compliance with securities regulators of STOs (Security Token Offerings) was very much needed. We are pleased to be at the forefront of this new market and excited that Leonovus is expected to be one of the first public companies in the world to issue a digital security," said Michael Gaffney, Leonovus Chairman and CEO.

About the Leonovus Galaxa Project - www.galaxa.com

The current rapidly growing cloud storage marketplace is an oligopoly and GALAXA will be disrupting this market concentration. GALAXA's blockchain and marketplace technology is designed to help manage this growth either in the cloud or on-premises and provide an open platform for developers to add new enterprise products/services.

Once built and implemented, GALAXA plans to accelerate the global development and implementation of Anything as a Service ("XaaS") offerings by independent developers that share a worldwide network of enterprise-grade distributed data storage and distributed compute assets. Unlike the proposed technology of many ICOs and blockchain projects, much of the core technology for GALAXA is already designed, developed and deployed by Leonovus. Since it began operations in 2011, the Company has invested $31 million in the development of its geo-distributed software-defined storage and distributed compute software.

Enterprise-class customers need a mechanism to discover, verify and use distributed services, be they cloud-based or on-premises, which meets their requirements for flexibility, efficiency, capability, security and compliance. Similarly, the providers of these enterprise-class XaaS in the GALAXA marketplace, need a cost-effective mechanism to make their services available, including verified capabilities and quality of service, for a broad vendor-neutral set of customers across multiple verticals and target markets. GALAXA plans to ensure that the exchange of services and payments is simple, efficient and verified with a Proof of Provided Service consensus algorithm and scales to millions of transactions per second.

About DigiMax - www.digimax.global

DigiMax Global Solutions is based in Toronto, Canada and is a company aiming to become a world leader in advising companies issuing digital securities, such as security tokens.

DigiMax was formed by five partners, three which bring experience in the cryptocurrency and security token industry, and two which have more than forty years of combined experience raising capital through public companies and the issuing of common shares. This partnership brings together all of the benefits and expediency of raising capital though security tokens, with a team that has decades of experience raising capital in conventional securities markets. The result is a team that combines expertise from both the token, and the conventional public capital markets.

This press release may contain forward-looking statements and information, which 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. There can be no assurance or guarantees 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 should not place undue reliance on any statements of forward-looking information that speak only as of the date of this release. Further information on Leonovus' public filings, including its most recent audited consolidated financial statements, are available at 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.

 

Cision View original content:http://www.prnewswire.com/news-releases/leonovus-announces-engagement-with-digimax-for-a-digital-security-offering-300853936.html

SOURCE Leonovus Inc.

Copyright 2019 Canada NewsWire

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