Route1 Inc.

Route1 Inc.

February 26, 2010 19:00 ET

Route1 Closes Non-Brokered Private Placement of 38 Million Units for Proceeds of CDN$1.9 Million

Route1 Provides Update on Bank Debt Repayment

TORONTO, ONTARIO--(Marketwire - Feb. 26, 2010) - Route1 Inc. (TSX VENTURE:ROI), a security and identity-based services company, today announced the closing of a non-brokered private placement of 38,000,000 units (Units) at $0.05 per Unit (the Unit Price) for aggregate proceeds of CDN$1,900,000 (the Offering) to Route1. Each Unit is comprised of one common share and one common share purchase warrant of Route1 (a Warrant). Each Warrant entitles the holder to purchase one additional common share of the Company at a price of $0.15 per common share for a period of 60 months (the Expiry Date) following the closing date.

The Offering has been conditionally approved by the TSX Venture Exchange (TSXV). According to TSXV rules and applicable securities legislation, the securities issued pursuant to the Offering are subject to a four-month and one day hold period, commencing on the closing date and ending on June 27, 2010.

Proceeds of the Offering will be used for general working capital and corporate purposes. No fees or commissions were paid as part of the Offering. 

All members of the Route1 board of directors with the exception of K. Andrew White have participated in the Offering.

Further, Route1 has been granted an extension on the repayment of its debt obligations to its lender from February 28, 2010 to May 31, 2010.

"We are thankful to our shareholders and lender for their continued support and belief in Route1's bright future," noted Tony P. Busseri, president and CEO of Route1 "Given our strengthened balance sheet, extension on the repayment of our debt and the current order book and sales pipeline, I am confident in our ability to turn the corner in the months to come and deliver positive results to all our partners and stakeholders."

The Offering remains subject to the final approval of the TSXV.

About Route1

Route1 delivers award-winning security and identity management solutions to customers worldwide. 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.

© 2010 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
    Capital Markets Advisor
    416-962-3300 ext. 225