Route1 closes $234,250 first tranche of financing

Executive Summary

• Route1 Inc. has closed the first tranche of its non-brokered private placement, raising approximately C$234,250 in gross proceeds.
• The company issued 3,123,332 units, each consisting of one common share and one warrant exercisable at 10 cents for 18 months.
• Net proceeds will be used to fund the development of Route1's AI co-pilot software (Version 4.0), scheduled for release in early 2026.

Key Details

• Transaction Structure: Non-brokered private placement of units priced at 7.5 cents per unit.
• Gross Proceeds: Approximately C$234,250.
• Securities Issued: 3,123,332 common shares and 3,123,332 common share purchase warrants.
• Warrant Terms: Each warrant allows the purchase of one common share at an exercise price of 10 cents for a period of 18 months from the issue date.
• Hold Period: All securities issued are subject to a four-month hold period, expiring on March 20, 2026.
• Finder’s Fees: Canaccord Genuity Corp. received a cash finder's fee of $8,812.50 and was issued 117,500 finder's warrants (exercise price 10 cents, 18-month term).
• Insider Participation: Company management subscribed for units totaling $57,999.92, representing approximately 24.76% of the initial closing and 11.60% of the overall offering. This constitutes a related party transaction under Multilateral Instrument 61-101.
• Use of Proceeds: Funding the development of Route1's actionable business intelligence (ABI) software application, specifically Version 4.0 featuring an AI co-pilot.
• Product Update (AI Co-Pilot): Version 4.0 is scheduled for release in early 2026. It will run on dedicated on-premises AI infrastructure (three GPU servers) and is designed for state-of-the-art 13B-70B models. Features include event-aware staffing, predictive compliance sweeps, proactive curb allocation, and strategic what-if investment planning.
• Overall Offering Size: The total offering size is up to $500,000.

Notable Quotes

• None explicitly quoted in the text; however, the release details the strategic intent to use proceeds for AI development.