Route1 Inc.

Route1 Inc.

October 05, 2010 12:15 ET

Route1 Secures Credit Facility for Growth

TORONTO, ONTARIO--(Marketwire - Oct. 5, 2010) - Route1 Inc. (TSX VENTURE:ROI) ("Route1" or the "Company"), a digital security and identity management company, today announced it had entered into a $500,000 credit facility with a banking and financial services organization.

Material terms of the credit facility are as follows:

  • A $450,000 demand operating facility and a $50,000 MasterCard limit.
  • The interest rate will be equal to the lender's prime rate of interest plus 2.00%.
  • The credit facility will be secured by the assets of the Company.
  • Access to the demand operating facility component will be based on the balance and term of Route1's trade accounts receivables outstanding plus available cash.
  • Route1 must maintain a current ratio in excess of 0.75:1.0.
  • Financial reporting, and representations and warranties that are reflective of the form and size of the credit facility.

"We always want to be in a position to capitalize on quality growth opportunities," said Tony Busseri, President and Chief Executive Officer, Route1 Inc. "We believe this credit facility provides the right amount of financial flexibility to continue to build sustainable shareholder value."


Route1 delivers industry-leading security and identity management solutions to corporations and government agencies who need universal, secure access to all digital resources and sensitive data. These customers depend on The Power of MobiNET® - Route1's communications and service delivery platform. MobiNET® provides identity assurance and individualized access to networks and data. Route1's patented solutions are based on FIPS-140-2 cryptographic modules, and simplify the process of meeting increasingly stringent regulatory requirements for privacy and security. Headquartered in Toronto, Canada, Route1 is listed on the TSX Venture Exchange. For more information, visit our website at:

This news release, 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, Route1 TruOFFICE, Route1 PurLINK, Route1 EnterpriseLIVE, 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.

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