Leonovus Announces Plans for an Initial Coin Offering for the GALAXA Marketplace
OTTAWA: Leonovus Inc., (“Leonovus” or the “Company”) (TSXV: LTV) 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”). The Company plans to release the first draft of the GALAXA Whitepaper before the end of October and launch the ICO before the end of 2018.
The SAFT will convert into tokens called GAAX, which is the underlying cryptocurrency for the Anything as a Service (“XaaS”) marketplace called “GALAXA”. The Company is in discussions with the Launchpad team of the Ontario Securities Commission (“OSC”) for its support and the support of other Canadian securities administrators in developing GALAXA to ensure that the offering and issuance of GALAXA SAFTs are carried out in compliance with Canadian securities laws. The Company is also in discussions with the TSX Venture Exchange (“TSXV”) with a view to listing the GAAX SAFTs for trading.
“Leonovus is applying to the regulators and the stock exchange to make the GAAX SAFT a publicly tradable security on the TSX Venture Exchange. If approved, unlike most cryptocurrencies, the GAAX SAFT will become a regulated security with the requirement for continuous public disclosure. This transparency exceeds the disclosure to investors compared to most other cryptocurrencies,” said Michael Gaffney, Chairman, and CEO.
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 ICO’s, 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.
The Company believes that GAAX is the first cryptography designed for the exchange of value between a corporate information technology buyer, an application service provider, and a storage/compute infrastructure supplier. The GALAXA ICO is a solution for the enterprise market – unlike most consumer-focused ICO’s.
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.
“The development of many new global software products and services requires the use of a token or coin as the measure of value for services delivered or services bought. Distributed everything, at the edge, will become the norm. Without the use of a token, operating and monitoring distributed storage and computing by humans is not economically feasible. However, as larger public and private corporations look for blockchain-based applications and services, they will expect regulation as trust is critical for these organizations. Leonovus intends to be at the forefront of global, trusted, tokenized applications,” said Gaffney.
It is expected that the planned ICO will include a public offering of SAFTs in Canada and a private placement offering of SAFTs to accredited investors in Canada and to equivalent investors in other jurisdictions in compliance with applicable securities laws of those jurisdictions. There can be no assurance that the Canadian securities administrators will provide a final receipt for the prospectus and there can be no assurance that the TSXV will accept the SAFTs for trading. Following the issue of SAFTs to investors, no GAAX Tokens will be issued pursuant to the SAFTs unless and until the Company successfully develops, builds, and launches the GALAXA Marketplace. The launch date is planned to occur within eighteen to twenty-four months after the close of financings. The ability to trade the GAAX Tokens will be subject to applicable securities and other laws and exchange rules at that time.