Route1 Closes the Acquisition of Group Mobile

Route1 (TSXV:ROI) has announced that it has closed on the acquisition of Group Mobile International LLC from XpresSpa Group.

As quoted in the press release:

Route1 announced the signing of the definitive agreement to acquire Group Mobile (the “Agreement”) on March 8, 2018.

Group Mobile, based in Chattanooga, TN and Chandler, AZ, supplies rugged mobile technology solutions to leading automotive manufacturing companies and suppliers, other leading manufacturing and distribution companies, as well as local and state governments in the southeastern and southwestern United States.   Route1 is acquiring Group Mobile to:

• Expand Route1’s service and product offerings;
• Strengthen outside and inside sales;
• Diversify revenue, customers, and verticals;
• Expand the use of Route1’s core technologies into the manufacturing, distribution, local and state government and respective suppliers; and
• Leverage Group Mobile’s current and future placement of rugged mobile devices to sell Route1’s core technologies as an integrated offering.

Under the terms of the Agreement, Route1 issued to XpresSpa Group 25 million common shares, and 30 million, three-year common share purchase warrants with an exercise price of CAD 5 cents per common share.  XpresSpa Group now owns approximately 7% of Route1’s undiluted common shares.  The issued Route1 common shares will not be tradeable until a date no earlier than 12 months after the closing date:

• 50% or 12.5 million common shares tradeable after 12 months, plus
• 2,083,333 common shares tradeable each month until 18 months after the date of closing, subject to a change of control provision.

Click here to read the full press release.