Route1 Announces Normal Course Issuer Bid

Rhea-AI Summary

Route1 Inc. (OTCQB:ROIUF) announced its intention to proceed with a normal course issuer bid (NCIB) authorized by the TSX Venture Exchange. From September 27, 2020, to September 26, 2021, Route1 may repurchase up to 1,755,980 common shares, approximately 5% of its outstanding shares, at a maximum price of $0.75 per share. This follows the previous buyback of 1,167,500 shares at an average price of $0.53. The company believes its shares are undervalued and aims to enhance shareholder equity through these purchases.

Positive

• Plans to buy back up to 1,755,980 common shares, signifying confidence in the company's future.
• Previous buyback program shows active shareholder engagement and commitment to enhancing equity.

Negative

• None.

TORONTO, ON / ACCESSWIRE / September 28, 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 it has provided the TSX Venture Exchange (the "Exchange") its Notice of Intention to move forward with a further normal course issuer bid ("NCIB"), subject to approval by the Exchange.

The notice provides that Route1 may, during the 12-month period commencing September 27, 2020 and ending September 26, 2021, purchase on the Exchange up to 1,755,980 common shares in total, being approximately 5% of the outstanding common shares. The price which Route1 will pay for any such shares will be the market price at the time of acquisitions, provided, however, that Route1 will not pay more than $0.75 per common share. The actual number of common shares which may be purchased pursuant to the NCIB and the timing of any purchases will be determined by management of Route1. All common shares purchased pursuant to the NCIB will be purchased for cancellation, and all such purchases will be made on the open market through the facilities of the Exchange. The NCIB will be conducted through Canaccord Genuity Corp., a member of the Exchange.

From September 27, 2019 to September 25, 2020, the Company had purchased a total of 1,167,500 common shares under the current normal course issuer bid at an average price of $0.53 per share.

Route1 believes that its common shares have been trading in a price range which does not adequately reflect the value of such shares in relation to the business of Route1 and its future business prospects. As a result, depending upon future price movements and other factors, Route1 believes that its outstanding common shares may represent an attractive investment to Route1. Furthermore, the purchases are expected to benefit all persons who continue to hold common shares by increasing their equity interest in Route1.

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
Chief Executive Officer
+1 480 578-0287
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, 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.

View source version on accesswire.com:
https://www.accesswire.com/608002/Route1-Announces-Normal-Course-Issuer-Bid

FAQ

What is Route1 Inc.'s normal course issuer bid (NCIB) plan for 2020?

Route1 plans to repurchase up to 1,755,980 common shares under its normal course issuer bid from September 27, 2020, to September 26, 2021.

What is the maximum price per share Route1 Inc. will pay for its buyback?

Route1 will not pay more than $0.75 per common share during the buyback.

How many shares did Route1 buy back in the previous NCIB?

In the previous NCIB, Route1 repurchased 1,167,500 shares at an average price of $0.53 each.

Why does Route1 believe its shares are undervalued?

Route1 believes its common shares have been trading at prices that do not reflect the company's value relative to its business prospects and performance.