Leonovus (LTV.V) announced that after several months of testing, its Vault and Smart Filer have completed all the feature and performance requirements of the test plan in the Department of National Defence (DND).
“Over the past twelve to eighteen months, we have focused our resources and efforts on the Justice and DND. Our goal was to prove our solution’s powerful benefits supporting the Canadian government’s cloud mandate with a few excellent reference customers. Leonovus’ innovative software provides our customers with enhanced data security, cloud agility, and cost reduction/management. Given the Government of Canada’s cloud mandate, this is a large market for Leonovus software. Our location in Ottawa and our product testing result with two major government departments put us in an ideal position to take advantage of this tremendous market opportunity,” said Michael Gaffney, CEO, Leonovus Inc.
This news follows the Company’s previously announced successful testing of its software at the Department of Justice (“Justice”) on March 3, 2021. Applications for testing to the federal government were made in 2018, however, testing did not begin until February 2020. A $430,000 Business in Canada Innovation Program (“BCIP” now Innovative Solutions Canada, “ICS”) supported proof-of-concept testing for the Company’s software in Justice and DND. Following the software’s success, discussions ensued regarding the deployment of Leonovus’ software into production.
Due to ICS approval, Leonovus has a simplified purchasing vehicle with the federal government for up to $1,500,000 of software sales. Any government department will be able to use this simplified purchasing method to buy the Company’s software without an RFP until February, 2022. Keep in mind, a purchasing vehicle doesn’t mean the federal government is in the market to buy new company cars. A ‘purchasing vehicle’ refers to streamlining the lengthy purchasing process for governments to buy products. If a product is vetted by a federally-approved procurement sourcing agency like the ICS, a purchasing vehicle can be arranged to simplify the purchasing process.
“It has taken three years of marketing and product development to get to this point, and our technology has advanced dramatically from the original Vault proposal. Our patented technology and trade secrets regarding our encrypt, shred and spread solution, while at the core of our unified data management solution, is now enhanced with a broader suite of cloud data management tools, including Smart Filer. The scope and breadth of our product have come a long way in the past three years. We also have another testing submission for our new XVault technology, which should have a response from the federal government in Q2 2021,” said Michael Gaffney, Leonovus CEO.
Having completed a private placement of $1,578,457 at the beginning of 2021, Leonovus has been performing exceptionally. Additionally, the Company has been making leaps and bounds in the cybersecurity market with its Vault, Smart Filer, and its recently announced XVault software. Having passed tests for both Justice and DND, the Company now has opportunities in the Canadian Federal Government which consists of over 100 ministries and agencies. As such, Leonovus shows promise for the future.
Leonovus’ stock price opened at $0.88 and reached a high of $0.94 following the news. The stock price currently sits at $0.90.