Route1 Inc.
TSX VENTURE : ROI

Route1 Inc.

September 24, 2009 12:09 ET

Route1 Shareholder's Vote for Concerned Shareholder's Nominees to Board of Directors

TORONTO, ONTARIO--(Marketwire - Sept. 24, 2009) - Route1 Inc. ("Route1" or the "Company") (TSX VENTURE:ROI), a security and identity-based services company, today announced that the Concerned Shareholder's Nominees to the Board of Directors received shareholder support at Route1's Annual General and Special Meeting of Shareholders held today in Toronto. The Company also announced changes to its management team.

Board of Directors Election Results

Approximately 66% of the shares voted at the meeting supported the Concerned Shareholder's Nominees to the Board. The nominees proposed by the Company received approximately 31% of the votes and approximately 3% of the shares were withheld from voting.

As a result of the shareholder vote, the Company's Board of Directors consists of Tony P. Busseri, Peter Chodos, Michael F. Dolan, Michael D. Harris, and K. Andrew White. Mr. Harris will Chair the Board. Shareholders also established the number of directors at five.

Total shares voted for the Concerned Shareholder's nominees were 138 million, compared with 65 million for the Company's nominees and 6 million shares were withheld from voting.

"The contest is now behind us. Shareholders of the Company recognize the potential of Route1's technology and it is now our clear mandate to execute on the principles we have set out", said Michael D. Harris, Chairman of the Board. "The Board's objective is to create shareholder value through adherence to, and execution of, a focused business plan, practicing strong corporate governance, and partnering with, and mentoring the management team to grow Route1. In the coming weeks, we will provide shareholders with expected key milestones and objectives, which will signal that we have advanced the Company's business plan. The Board of Directors will work closely with management in tracking and communicating the execution of the business plan."

Management Changes

Effective immediately, the Company terminated the interim CEO contract of Dean Peloso.

K. Andrew White will serve as the Company's interim President and CEO while a Special Committee consisting of the independent directors of the Board review all claims and accusations (the "Review") made by the prior Board. The independent directors expect that the Review will be completed within two to three weeks, at which time the Company will issue a press release with the results of the Review.

Jeremy Budd of Boyle & Co. LLP was appointed as Corporate Secretary.

Ali Mahdavi of Spinnaker Capital Markets Inc. has been reappointed as the Company's investor relations advisor and independent capital markets counsel.

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 www.route1.com.

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.

©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
    am@spinnakercmi.com