TORONTO, March 10 /CNW/ - Route1 Inc. (TSX-V: ROI) announced today that
it has completed its private placement offering of 41,666,666 units ("Units")
at a price of $0.12 per Unit for total gross proceeds of $5,000,000. Route1
initially announced the offering on February 10, 2006.
Each Unit is comprised of one common share and one common share purchase
warrant (a "Warrant"). Each whole Warrant is exercisable into one common share
at a price of $0.155 per share for a period of 2 years from the date of
closing.
The sole agent for the offering, Westwind Partners Inc., was paid a
commission of 7.0% in cash and 7% in broker warrants based on the gross
proceeds from the sale of the Units.
"With the endorsement of 10 new Institutional Investors, we can now focus
on the commercialization of our MobiKEY. Early indications are strong, and we
are predicting tremendous success of our MobiNET platform" said Andrew White,
CEO, Route1 Inc.
The common shares have been conditionally approved for listing on the TSX
Venture Exchange Inc. (the "Exchange"), subject to compliance with the normal
requirements of the Exchange. The Units sold pursuant to the private placement
will be subject to resale restrictions pursuant to applicable securities law
and stock exchange requirements.
About Route1 Inc.
Route1 is an innovator in secure, mobile-thin clients. The Company's Mobi
Solution bridges the gap between business agility and data security allowing
individuals and organizations to assuredly support their mobile office,
regulatory compliance, business growth and business continuity needs. Route1's
solution consists of unique mobile devices and software integrated with a
managed secure connectivity service. The Company is listed on the TSX Venture
Exchange (symbol: ROI) with offices in Toronto and New York.
This news release 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.
The TSX Venture Exchange has not reviewed or approved the contents of
this press release and does not accept responsibility for the adequacy or
accuracy of this press release.
