Leonovus Inc. announced that it has entered into a loan agreement with two directors for bridge loan in the principal amount of CAD 100,000 on February 3, 2023. The transaction will include participation from 2 directors for CAD 50,000 each and are expected to receive 1,250,000 warrants each. The Loan will have a term of eighteen months from the advance date and will bear interest at the fixed rate of 18% per annum and can be paid down at any time with the penalty of the full annual interest.

The Loan will be secured by a general security agreement. Subject to approval of the TSXV, the Lenders will receive a bonus of 2,500,000 common share warrants of the company, each warrant have an exercise price of CAD 0.040 per share and a term of eighteen months. No commission or finder's fee will be paid in connection with the Loan.

All bonus securities are subject to a hold period of four months and one day from the date of issuance. The number of common shares issued and outstanding at this time is 20,900,996. Closing of loan and warrants is subject to approval of the TSXV and customary closing conditions.