Business
Route1 Completes $4.0 Million Private Placement Financing; Oversubscribed Round Indicates Company Momentum
Route1 Completes $4.0 Million Private Placement Financing; Oversubscribed Round Indicates Company Momentum.
About this update from Route1 Inc.
[{"type":"text","content":"\n\n\n\n\nTORONTO, June 21 /CNW/ - Route1 Inc. (TSX-V:ROI), an innovator in\nwireless remote computing, today announced it has directly secured \n$4.0 million from private investors, employees, and institutions by way of a\nprivate placement of units consisting of one Common Share and one half of one\nCommon Share purchase warrant. The Company issued 13,333,335 units at $0.30\neach. The Closing of the Offering is subject to obtaining all necessary\nregulatory approvals.\nRoute1, which has raised approximately $11.5 million since early 2004,\nwill use the money for general corporate and working capital purposes to\nestablish customer support, marketing and distribution channels for its new\nMobi Solution as well as develop follow-on products that exploit its unique\nplatform technology. The Company unveiled its much-awaited Mobi Solution on\nJune 9th in Toronto at its Launch Day event sponsored by IBM Canada, Psion\nTeklogix, and CNG Solutions.\n\"We are very excited about the level of interest we have received from\ninvestors and our employees,\" said John Denham, VP Finance and CFO, Route1.\n\"We're also pleased with the speed with which we were able to secure this\nfunding which has allowed us to focus our collective energies on our product\nrollout and prospective customers.\"\n\nPrivate Placement Details\nEach whole Warrant will entitle the holder to acquire one Common Share at\nan exercise price of $0.40 per share until the date which is 18 months from\nthe Closing Date. The Warrants may be repurchased by the Company at $1.00 less\nthe exercise price of the Warrant subject to 10 day notice to holders. The\nCommon Shares, the Warrants and the Common Shares issuable upon the exercise\nof Warrants are subject to a hold period of not more than four months and one\nday from the Closing Date.\n\nAbout Route1\nRoute1 was founded with the vision of mobilizing the desktop PC. Drawing\non years of experience in secure wireless applications, Route1 is bridging the\ngap between business needs and technology's limitations to deliver its Mobi\nSolution. The Company is listed on the TSX Venture Exchange and is\nheadquartered in Toronto, Ontario with offices in New York, NY. For more\ninformation, visit www.route1.com.\n\n(C) 2005 Route1 Inc. All rights reserved. All other trademarks used are\n owned by their respective owners.\n%SEDAR: 00...