Business & Finance
Business and FinanceBusiness and Finance 
Thu, October 29, 2009
Wed, October 28, 2009
TORONTO, ONTARIO--(Marketwire - Oct. 28, 2009) - Route1 Inc. ("Route1" or the "Company") (TSX VENTURE:ROI), a security and identity-based services company, today provided an update on several key initiatives.
CEO Review
An independent, third party review investigating the reasons for the termination of K. Andrew White as Chief Executive Officer of Route1 by the previous board of directors on July 20, 2009, was conducted by Stanley M. Beck, Q.C., a former law professor and Dean of Osgoode Hall Law School, and past Chair of the Ontario Securities Commission. As noted in previous Company releases, the reason given for Mr. White's termination, which was stated to be for cause, was a result of Mr. White's "past performance". Mr. Beck was asked by the newly elected board of directors of Route1 to express an opinion on whether the background documents indicated any integrity concerns with respect to Mr. White, and whether such concerns played a part in his termination.
In his investigation, Mr. Beck reviewed the correspondence and documentation provided by the prior board of directors of Route1 to the TSX Venture Exchange regarding Mr. White's dismissal. Mr. Beck's findings indicate there is no reason why the current board of directors of Route1 should be concerned as to Mr. White's ongoing conduct as CEO. Mr. Beck also noted that "the Company appears to have been operated quite successfully and that, with mutual understanding as to operational guidelines and communication requirements, as well as the normal board oversight, (he saw) no reason why Mr. White should not carry on successfully as CEO with the confidence of the board."
The board of directors has accepted Mr. Beck's report and considers this matter now closed. Effective immediately, Mr. White has been appointed by the board of directors of Route1 as President and CEO.
Changes to Management
Effective immediately, Route1 has terminated its relationship without cause with Anthony Rzepka, Executive Vice President, Chief Financial Officer and Treasurer. The board of Route1 acknowledges and recognizes Mr. Rzepka's significant past contributions to the Company, especially over the past few months, and wishes him well in his future endeavours.
The Company also announced that effective immediately, Tim Hyland, Executive Vice President and Chief Operating Officer has been terminated.
Lastly, Mr. White has asked Tony Busseri to act as a director-at-large and work with him in identifying and retaining new additions to the management team that will enhance the Company's operational effectiveness and competitive position as it moves into the next phase of its evolution.
Mr. White, with Mr. Busseri's assistance, will review and improve the Company's internal and external operations that will reposition Route1 to enhance the execution of its business plan. Key goals in this initiative include:
- Strengthening internal human capabilities in order to provide a higher level of customer service and support;
- Redefining and improving Route1 as an organization to better position it to execute on its current and future client arrangements;
- Improving the efficiency and effectiveness of its management reporting systems; and
- Improving the planning and execution of its organic growth plan.
"We are taking all the appropriate steps to ensure that our relationships with key customers such as Qwest Government Services Inc., the Government of the Netherlands, and the Canadian Government remain strong, and to build a solid platform to attract and retain new business," stated Mr. White, President and CEO of Route1. "As outlined in our previous public disclosure, the new board of Route1 is focused on transforming the Company to deliver on the significant near term and long range opportunities that exist in our space. The Company's cash flow and earnings goals remain on track and we have successfully improved the Company's access to capital in order to continue to expand our operations and sales reach."
About Route1
Route1 delivers award-winning security and [ identity management ] solutions to customers worldwide. These solutions provide universal, [ secure access ] to all digital resources and sensitive data. At the heart of Route1's solutions is [ MobiNET ], a communications and service delivery platform focused on identity management and [ entitlement-based ] access to resources. Route1's patent-pending solutions are based on FIPS-140-2 cryptographic modules, and simplify the process of meeting increasingly stringent regulatory requirements around privacy and security. Headquartered in Toronto, Route1 is listed on the TSX Venture Exchange (symbol: ROI). For more information, visit [ www.route1.com ].
This news release is required by applicable Canadian laws and 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.
Certain statements in this press release may contain words such as "could", "expects", "may", "anticipates", "believes", "intends", "estimates", "targets", "envisions", "seeks" and other similar language and are considered forward-looking statements or information under applicable securities legislation. These statements are based on Route1's current expectations, estimates, forecasts and projections about the operating environment, legal environment, economies and markets in which Route1 operates. These statements are subject to important assumptions, risks and uncertainties, which are difficult to predict and the actual outcome may be materially different from those contemplated in forward-looking statements. Unless otherwise required by applicable securities laws, Route1 disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
(C)2009 All rights reserved. Route1, the Route1 Logo, Mobi, Route1 MobiKEY, TruOFFICE, PurLINK, EnterpriseLIVE, DEFIMNET, IBAD and Route1 MobiNET are either Registered Trademarks or Trademarks of Route1 Inc. in the United States and or Canada. All other trademarks and trade names are the property of their respective owners.
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.