Route1 Closes $3 Million Private Placement

THIS NEWS RELEASE IS INTENDED FOR DISTRIBUTION IN CANADA ONLY AND IS NOT INTENDED FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES

TORONTO, ON / ACCESSWIRE / December 16, 2020 / Route1 Inc. (OTCQB:ROIUF)(TSXV:ROI) (the “Company” or “Route1”), an advanced North American provider of data-centric business empowerment solutions, today announced that based on strong demand, the Company has closed its previously announced $3,000,000 private placement.

The $3,000,000 was raised by way of a non-brokered private placement (the “Offering”) of Units (“Units”) of the Company at a price of $0.85 per Unit. Each Unit consists of one common share in the capital of Route1 (the “Common Share”) and one Common Share Purchase Warrant (the “Warrant”). Each Warrant will be exercisable into one Common Share for a period of 18 months at a price of $1.00 per share. The Company may accelerate the expiry dates of the Warrants to a date that is not less than 30 days following delivery of an acceleration notice if, at any time, the volume weighted average trading price of the Common Shares equals or exceeds $1.50 for a period of 14 consecutive trading days on the TSXV. The Company paid cash finders’ fees of $38,250 and 45,000 finder warrants on the same terms and conditions as those under the Offering.

The securities issued are subject to a statutory hold period in Canada for a period of four months and one day from the Closing Date. Proceeds of the private placement will be used for growth and general corporate purposes. Lastly, 80,000 Units sold under the Offering and the finder warrants are subject to the Final Acceptance of the TSX Venture Exchange. Certain portions of the Offering are being settled by delivery against payment and are expected to be completed by the end of the week.

Stock Option Grant

On December 16, 2020, the Company granted an advisor stock options in the amount of 200,000 with an exercise price of $1.05, the closing share price on today’s date. The stock options will expire on December 15, 2023 and will fully vest on the first anniversary of the grant. Under the Company’s stock option plan, 10% of the issued capital is reserved for issuance for a total of 3,869,402 options. As of today’s date and including the above grant, a total of 3,312,500 options are currently outstanding under the stock option plan.

About Route1 Inc.

Route1 Inc. is an advanced North American technology company that empowers their clients with data-centric solutions necessary to drive greater profitability, improve operational efficiency and gain sustainable competitive advantages, while always emphasizing a strong cybersecurity and information assurance posture. Route1 delivers exceptional client outcomes through real-time secure delivery of actionable intelligence to decision makers, whether it be in a manufacturing plant, in-theater or in a university parking lot. Route1 is listed on the OTCQB in the United States under the symbol ROIUF and in Canada on the TSX Venture Exchange under the symbol ROI. For more information, visit: www.route1.com.

For More Information, Contact:

Tony Busseri
President and Chief Executive Officer
+1 480 500-7030
tony.busseri@route1.com

This news release, required by applicable Canadian laws, 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.

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.

© 2020 Route1 Inc. All rights reserved. No part of this document may be reproduced, transmitted or otherwise used in whole or in part or by any means without prior written consent of Route1 Inc. See https://www.route1.com/terms-of-use/ for notice of Route1’s intellectual property.

This news release may contain statements that are not current or historical factual statements that may constitute forward-looking statements or future oriented financial information. These statements are based on certain factors and assumptions, including, expectations regarding the success of the private placement and the terms on which the Company will raise funds, price and liquidity of the common shares, expected financial performance, expected subscribers and subscription-based revenue, business prospects, technological developments, development activities, the ability of the Company to obtain the supersedeas bond in order to appeal the decision to the United States Court of Appeals for the Federal Circuit, and like matters. While Route1 considers these factors and assumptions to be reasonable, based on information currently available, they may prove to be incorrect. These statements involve risks and uncertainties, including but not limited to the risk factors described in reporting documents filed by the Company. Actual results could differ materially from those projected as a result of these and other risks and should not be relied upon as a prediction of future events. The Company undertakes no obligation to update any forward-looking statement or future oriented financial information to reflect events or circumstances after the date on which such statement is made, or to reflect the occurrence of unanticipated events, except as required by law. Estimates used in this presentation are from Company sources. Past or forecasted performance is not a guarantee of future performance and readers should not rely on historical results or forward-looking statements or future oriented financial information as an assurance of future results.

SOURCE: Route1 Inc.

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