Route1 to buy back up to 18.26 million shares

2015-09-14 12:08 ET - News Release

Mr. Tony Busseri reports

ROUTE1 ANNOUNCES NORMAL COURSE ISSUER BID AND 2015 ANNUAL GENERAL AND SPECIAL MEETING OF SHAREHOLDERS DATE

Route1 Inc. has provided the TSX Venture Exchange its notice of intention to move forward with a normal course issuer bid (NCIB), subject to approval by the exchange.

The notice provides that Route1 may, during the 12-month period commencing Sept. 11, 2015, and ending Sept. 10, 2016, purchase on the exchange up to 18,262,570 common shares in total, being approximately 5 per cent of the outstanding 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 six cents per common share. The actual number of common shares which may be purchased pursuant to the bid 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 Paradigm Capital Inc., a member of the exchange.

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.

Annual general and special meeting

Today, the company announced that it will hold its annual meeting of its shareholders on Nov. 25, 2015. The meeting will be held at 9 a.m. ET at the Omni King Edward Hotel, 37 King St. East, Toronto, Ont.