OTTAWA, Jan. 14, 2018 /CNW/ - Leonovus Inc.,
("Leonovus" or the "Company") (TSXV: LTV) (OTC: LVNSF) announced
today an update to its initial December 21, 2017 news
release regarding plans for the launch of an Initial Coin Offering
("ICO") for securities in the form of a contract called a Simple
Agreement for a Future Token ("SAFT"), which supported the GALAXA
project with the SAFT eventually converting into the GAAX security
token.
Leonovus has decided to skip the SAFT offering and instead
proceed directly with a Security Token Offering ("STO"). The
planned STO includes a private placement offering to accredited
investors in various jurisdictions in compliance with
applicable securities laws of those jurisdictions. The ability to
trade the GAAX tokens will be subject to applicable securities and
other laws and exchange rules at that time.
The Company's initial SAFT offering concept, which included
listing the SAFT on the TSXV for trading, addressed the problem of
selling a 'token-like' security that could trade immediately on the
TSXV following the statutory hold periods. The SAFTs would have
eventually converted into the GAAX token that would trade on a
Security Token Exchange ("STE").
"Security Token Exchanges did not exist in December 2017, which is why we chose the SAFT
process at that time. Over the last few months, several third
parties have launched STEs in various jurisdictions, and more are
planned for launch in 2019 and 2020. Currently, we are reviewing
the new STEs that are in the USA,
Singapore, Switzerland and Malta. The development of STEs is welcomed as
it simplifies the overall process regarding the listing and trading
of the GALAXA security token on a regulated exchange. Because of
the change in investment strategy, we are now targeting the end of
Q1 2019 to close our first investment tranche," said Michael
Gaffney, Chairman and CEO.
About the Leonovus GALAXA project. www.GALAXA.com
The current cloud storage and compute marketplace is an
oligopoly and GALAXA intends to challenge this market
concentration. Gartner predicts 40%+ compounded growth rates for
enterprise data storage and compute. GALAXA's blockchain technology
is designed to manage this growth either in the cloud or
on-premises and provide an open platform for developers to add new
enterprise products/services.
The GALAXA protocol introduces a new blockchain architecture
designed to accelerate the global development and implementation of
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 $26
million in the development of its geo-distributed
software-defined storage and distributed compute software. Large
portions of this technology are already in trials with Leonovus
customers. This software is the essential foundation technology for
GALAXA. Leonovus will provide free, perpetual licenses to GALAXA
for this software, which should accelerate the development of XaaS
applications by independent entrepreneurial developers.
The GALAXA hybrid blockchain protocol provides the governance,
risk management and compliance required by large enterprises as
they need to extend standard IT controls into distributed cloud
applications.
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 ensures 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.
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 because 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.
SOURCE Leonovus Inc.
