Route1 Inc.

Route1 Inc.

January 28, 2010 08:00 ET

Route1 Announces Correction to Previously Granted Stock Options Based on TSX Venture Exchange Review

TORONTO, ONTARIO--(Marketwire - Jan. 28, 2010) - Route1 Inc. ("Route1" or the "Company") (TSX VENTURE:ROI), a security and identity-based services company, today took action to correct previously granted stock options to directors, officers and employees. A review by the TSX Venture Exchange found that approximately 10,000,000 stock options granted between April 27, 2006 and the Company's most recent annual meeting held on September 24, 2009 were granted below the minimum exercise price allowable by the policies of the TSX Venture Exchange or were not publicly disclosed.

As a result of the non-compliance of the stock option grants referred to above, the board of directors (the "Board") of the Company has cancelled the 6,241,646 outstanding options to directors and employees. Also, following the election of the new board of directors at the Company's annual and special meeting of shareholders, the 3,550,730 options to purchase common shares of the Company held by the outgoing board of directors expired on December 24, 2009 and another 3,700,000 options granted to a former officer of the Company expired on January 27, 2010, ninety days following the termination of such former officer.

After the above, all non-compliant stock options granted by the Company during the noted period have either been cancelled or have expired. The Company currently has 8,000,000 stock options outstanding.

The Board is reviewing compensation arrangements for all employees of Route1 during the first quarter of the 2010 calendar year. As part of the compensation review, the Board expects to issue new stock options that meet all regulatory requirements.

The Company has adopted policies and procedures to ensure all future stock option grants are in compliance with TSX Venture Exchange policies.

About Route1

Route1 delivers award-winning security and identity management solutions to customers world-wide. These solutions provide universal, secure access to all digital resources and sensitive data. At the heart of Route1's solutions is MobiNET, a communications and service delivery platform focused on identity management and entitlement-based access to resources. Route1's patent-pending solutions are based on FIPS-140-2 cryptographic modules, and simplify the process of meeting increasingly stringent regulatory requirements around privacy and security. Headquartered in Toronto, Route1 is listed on the TSX Venture Exchange (symbol: ROI). For more information, visit

This news release is required by applicable Canadian laws and does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

Certain statements in this press release may contain words such as "could", "expects", "may", "anticipates", "believes", "intends", "estimates", "targets", "envisions", "seeks" and other similar language and are considered forward-looking statements or information under applicable securities legislation. These statements are based on Route1's current expectations, estimates, forecasts and projections about the operating environment, legal environment, economies and markets in which Route1 operates. These statements are subject to important assumptions, risks and uncertainties, which are difficult to predict and the actual outcome may be materially different from those contemplated in forward-looking statements. Unless otherwise required by applicable securities laws, Route1 disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

(C)2009 All rights reserved. Route1, the Route1 Logo, Mobi, Route1 MobiKEY, TruOFFICE, PurLINK, EnterpriseLIVE, DEFIMNET, IBAD and Route1 MobiNET are either Registered Trademarks or Trademarks of Route1 Inc. in the United States and or Canada. All other trademarks and trade names are the property of their respective owners.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Spinnaker Capital Markets Inc.
    Ali Mahdavi
    Investor Relations
    +1 416-962-3300 ext. 225