Ex99.4

MANAGEMENT’S DISCUSSION AND ANALYSIS

Year ended December 31, 2019

BACKGROUND

This Management’s Discussion and Analysis (“MD&A”) has been prepared based on information available to Routemaster Capital Inc. (“we”, “our”, “us”, “Routemaster” or the “Company”) containing information through February 26, 2020, unless otherwise noted. The MD&A provides a detailed analysis of the Company’s operations and compares its financial results for years ended December 31, 2019 and 2018. The financial statements and related notes of Routemaster have been prepared in accordance with International Financial Reporting Standards (“IFRS”). Please refer to the notes of the December 31, 2019 annual audited year for disclosure of the Company’s significant accounting policies. The Company’s functional and reporting currency is the Canadian dollar. Unless otherwise noted, all references to currency in this MD&A refer to Canadian dollars.

Additional information, including our press releases, have been filed electronically through the System for Electronic Document Analysis and Retrieval (“SEDAR”) and is available online under the Company’s SEDAR profile at www.sedar.com.

CAUTIONARY STATEMENT REGARDING FORWARD LOOKING INFORMATION

Except for statements of historical fact relating to Routemaster certain information contained herein constitutes forward-looking information under Canadian securities legislation. The use of any of the words “anticipate”, “plan”, “continue”, “estimate”, “expect”, “may”, “will”, “project”, “goal”, “predict”, “potential”, “should”, “believe”, “intend” or the negative of these terms and similar expressions are intended to identify forward-looking information and statements. The information and statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking information and statements. Such statements reflect the Company’s current views with respect to certain events, and are subject to certain risks, uncertainties and assumptions. Many factors could cause the Company’s actual results, performance, or achievements to vary from those described in this MD&A. Should one or more of these risks or uncertainties materialize, or should assumptions underlying forward-looking statements prove incorrect, actual results may vary materially from those described in this MD&A as intended, planned, anticipated, believed, estimated, or expected. With respect to the forward-looking statements contained herein, although the Company believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements, because no assurance can be given that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to: the Company’s lack of operating history as an investment company; the volatility of the market price of the common shares of the Company; risks relating to the trading price of the common shares of the Company relative to net asset value; risks relating to available investment opportunities and competition for investments; the volatility of the share prices of investments in public companies; the dependence on management, directors and the investment committee; risks relating to additional funding requirements; potential conflicts of interest and potential transaction and legal risks, conflict of interests and litigation risks, as more particularly described under the heading “Risk Factors” in this MD&A. Although management of the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The Company does not undertake to update any forward-looking statements, except in accordance with applicable securities laws.

OVERVIEW OF THE COMPANY

Routemaster is a publicly listed investment issuer on the TSX Venture Exchange (“TSXV”) trading under the symbol “RM”. The Company makes use of the experience, expertise and opportunity flow of its management and board of directors to opportunistically make investments that the Company believes will provide superior returns. Such investments may include the acquisition of equity, debt or other securities of publicly traded companies, private companies, or other entities.

The Company’s financial statements have been prepared in accordance with IFRS applicable to a going concern. Accordingly, they do not give effect to adjustments that would be necessary should the Company be unable to continue as a going concern and therefore be required to realize its assets and liquidate its liabilities and commitments in other than the normal course of business and at amounts different from those in the accompanying financial statements.

INVESTMENT EVALUATION PROCESS

In selecting securities for the investment portfolio of the Company, the Investment Committee will consider various factors in relation to any particular issuer, including:

➢	inherent value of its assets;

➢	proven management, clearly-defined management objectives and strong technical and professional support;

➢	future capital requirements to develop the full potential of its business and the expected ability to raise the necessary capital;

➢	anticipated rate of return and the level of risk; and

➢	financial performance, including consistency of positive cash flow.

COMPOSITION OF INVESTMENT PORTFOLIO

The nature and timing of the Company’s investments will depend, in part, on available capital at any particular time and the investment opportunities identified and available to the Company.

The Company intends to create a diversified portfolio of investments. The composition of its investment portfolio will vary over time depending on its assessment of a number of factors including the performance of financial markets and credit risk.

INVESTMENT STRATEGY

The Company’s investment strategy guidelines are:

➢	The Company may invest in securities of both public and private companies or other entities that the Company believes have the potential for superior investment returns.

➢

The Company will maintain a flexible position with respect to the form of investment taken and may employ a wide range of investment instruments, including equity, bridge loans, secured loans, unsecured loans, convertible debentures, warrants, options, royalties, net profit interests and other hybrid instruments.

➢	The Company will not invest in physical commodities, derivatives, “short” sales or other similar transactions (except that the Company may sell call options to purchase securities owned by the Company as a means of locking in gains or avoiding future losses).

➢

The Company will not be precluded from investing in any particular industry. The Company’s management and the Board have experience and expertise in a wide range of industry sectors and will pursue opportunities in those sectors that the Company believes from time to time offer the best opportunities for the creation of enhanced value for the Company’s shareholders. Similarly, there are no restrictions on the size or market capitalization of companies or other entities in which the Company may invest, subject to the provisions hereof.

➢	The Company has no specific policy with respect to investment diversification. Each investment will be assessed on its own merits and based upon its potential to generate above market gains for the Company.

➢	Immediate liquidity shall not be a requirement.

➢

The Company may, from time to time and in appropriate circumstances, seek a more active role in regards to investment situations and investee companies where the involvement of the Company is expected to make a significant difference to the success of the Company’s investment. In appropriate circumstances, this may involve the Company, either alone or jointly with other shareholders, seeking to influence the governance of public or private issuers by seeking board seats, launching proxy contests or taking other actions to enhance shareholder value, or becoming actively involved in the management or board oversight of investee companies.

➢

The Company may also make investments in special situations, including event-driven situations such as corporate restructurings, mergers, spin-offs, friendly or hostile takeovers, bankruptcies or leveraged buyouts. Such special situations may include, without limitation, investments in one or more public companies, by takeover bid or otherwise, where there is an opportunity to invest to gain control over the strategic direction of such public companies, whether using the shares of the Company as currency or otherwise. Such situations may also involve the Company lending money, directly or indirectly.

➢

Depending upon market conditions and applicable laws, the Company may seek to sell any or all of its investments when it concludes that those investments no longer offer the potential to generate appropriate gains for the Company, or when other investment opportunities reasonably available to the Company are expected to offer superior returns. This may include the disposition of any or all of the Company’s investments in a particular sector or of a particular nature, or any or all of the Company’s investments more generally, without prior notice to the Company’s shareholders.

➢	Subject to applicable laws and regulatory requirements, the Company may also from time to time seek to utilize its capital to repurchase shares of the Company.

➢	The Company may, from time to time, use borrowed funds to purchase or make investments, or to fund working capital requirements, or may make investments jointly with third parties.

➢

Depending upon the Company’s assessment of market conditions and investment opportunities, the Company may, from time to time, be fully invested, partially invested or entirely uninvested such that the Company is holding only cash or cash-equivalent balances while the Company actively seeks to redeploy such cash or cash-equivalent balances in suitable investment opportunities. Funds that are not invested or expected to be invested in the near-term, while the Company actively seeks to redeploy such funds in one or more suitable investment opportunities, may, from time to time as appropriate, be placed into high quality money market investments.

➢

All investments shall be made in compliance with applicable laws in relevant jurisdictions, and shall be made in accordance with the rules and policies of any applicable regulatory authorities. From time to time, the board of directors of the Company may authorize such additional or other investments outside of the guidelines described herein as it sees fit for the benefit of the Company and its shareholders.

FISCAL 2019 PERFORMANCE HIGHLIGHTS

	Three months ended December 31,						Twelve months ended December 31,
Operating Results	2019			2018			2019			2018
	$			$			$			$
Realized (loss) gain on investments, net		(162,982	)		(213,720	)		(708,793	)		395,635
Unrealized (loss) on investments, net		(27,756	)		(539,563	)		(124,807	)		(6,592,146	)
Interest income		3			589			2,040			11,387
Net (loss) and comprehensive (loss)		(269,147	)		(3,223,787	)		(1,507,338	)		(9,794,067	)
Basic and dilute (loss) per share		(0.01	)		(0.08	)		(0.04	)		(0.24	)

During the three and twelve months ended December 31, 2019, the Company realized (loss) gain on investments of $(162,982) and $(708,793) compared to a realized (loss) gain of $(213,720) and $395,635 in 2018. During the three and twelve months ended December 31, 2019 the Company realized loss from the disposal of holdings in Aberdeen International Inc. (“AAB”), EarthRenew (“ERTH”), GF Comstock II LP (“GF”), Fura Gems Inc. (“FURA”), QMX Gold Corporation (“QMX”), Pacific Rim Cobalt Corp. (“BOLT”) and Trigon Metals Inc. (“TM”) . The Company’s unrealized (loss) on investments for the three and twelve months ended December 31, 2019 was $(27,756) and $(124,807) compared to $(539,563) and $(6,592,146) in 2018. The unrealized (loss) for the three and twelve months ended December 31, 2019 consist of losses on the Company’s investments holdings in Sulliden Mining Capital Inc. (“SMC”), ARHT Media Inc. (“ART”), FURA, offset by unrealized gain on Yukoterre Resources Inc. (“YT”) and the reversal of prior year’s losses on AAB, FURA, QMX, BOLT and TM. The Company’s net (loss) and comprehensive (loss) for the three and twelve months ended December 31, 2019 was $(269,147) ($0.01 per common share) and $(1,507,338) ($0.04 per common share) compared to $(3,223,787) ($0.08 per common share) and $(9,794,067) ($0.24 per common share) in 2018. The decreased net (loss) for the three and twelve months ended December 31, 2019 was due to lower realized and unrealized (loss) on investments, decreased operating, general and administration costs, decreased transaction costs offset by lower foreign exchange gain and no interest income. For more details, see the Financial Results section in this MD&A.

	December 31, 2019			December 31, 2018
Investments Total equities, at fair value	$	623,275		$	1,799,573
Total investments		623,275			1,799,573
Shareholders' (deficiency) equity		(1,165,565	)		341,773

As at December 31, 2019, the Company’s total investments were $623,275 compared to $1,799,573 as at December 31, 2018. During the twelve months ended December 31, 2019, the Company’s shareholder’s equity decreased to a deficiency of $(1,165,565) from $341,773 as at December 31, 2018. The decrease in the value of the Company’s portfolio and decrease in shareholder’s equity during 2019 was mainly due to the realized and unrealized loss in investments, operating, general and administration costs, transaction costs, offset by foreign exchange gain.

INVESTMENTS, AT FAIR VALUE, THROUGH PROFIT AND LOSS, AS AT DECEMBER 31, 2019

Public investments

At December 31, 2019 the Company’s four publicly-traded investments had a total estimated fair value of

$623,275.

Public Issuer	Note Security description		Cost	Estimated Fair Value	% of FV
ARHT Media Inc.		125,000 warrants expire Feb 1, 2020	$14,318	$ -	0.0%
Fura Gems Inc.	(i)	780,000 common shares	253,400	128,700	20.6%
Sulliden Mining Capital Inc.	(i,ii)	8,091,500 common shares	2,612,252	404,575	65.0%
Yukoterre Resources Inc.	(i)	1,000,000 common shares	50,000	90,000	14.4%
Total public investments			$2,929,970	$ 623,275	100.0%

(i)	An insider and a former officer of the Company is a director and officer of the investee corporation as at December 31, 2019.

(ii)	The Company has filed a Section 62-103 report pursuant to the Securities Act (Ontario) for this investment and has filed an early warning report on SEDAR.

At December 31, 2018, the Company’s seven publicly-traded investments had a total estimated fair value of $1,648,119.

Public Issuer	Note Security description		Cost	Estimated Fair Value	% of FV
Aberdeen International Inc.	(i)	3,471,000 common shares	$451,230	$ 208,260	12.6%
ARHT Media Inc.		125,000 warrants expire Feb 1, 2020	14,318	1,413	0.1%
Fura Gems Inc.	(i)	1,580,000 common shares	549,015	461,100	28.0%
		500,000 warrants expire May 5, 2019
Pacific Rim Cobalt Corp.		457,143 warrants expire Oct 23, 2019	48,255	6,309	0.4%
QMX Gold Corporation		577,000 warrants expire Oct 5, 2019	68,288	57	0.0%
Trigon Metals Inc.		325,000 warrants expire Sept 16, 2019	88,255	-	0.0%
Sulliden Mining Capital Inc.	(i,ii)	8,091,500 common shares	2,612,252	970,980	58.9%
Total public investments			$3,831,613	$ 1,648,119	100.0%

(i)	An insider and/or officer of the Company is a director and officer of the investee corporation as at December 31, 2018.

(ii)	The Company has filed a Section 62-103 report pursuant to the Securities Act (Ontario) for this investment and has filed an early warning report on SEDAR.

Private Investments

At December 31, 2019, the Company had no private investments.

At December 31, 2018, the Company’s two private investments had a total estimated fair value of $151,454.

Private Issuer	Note Security description	Cost	Estimated Fair Value	% of FV
Yukoterre Resources Inc.*	1,000,000 common shares	$ 50,000	101,454	33.0%
GF Comstock II LP	Limited partnership	99,848		67.0%

Total private investments		$ 149,848	$ 151,454	100.0%

*Formerly 2560344 Ontario Inc.

During the year ended December 31, 2019, the Company disposed of investments for proceeds of approximately $0.5 million. See details below.

Aberdeen (TSX: AAB)

Aberdeen is publicly traded global resource investment company and merchant bank focused on small capitalized companies in the metals and mining sector. Aberdeen’s operations are in Canada and makes investments, mostly into public and private Canadian resources companies, whose operations are located throughout the world. In Q3, 2017, the Company received 7,140,000 Aberdeen common shares as part of the consideration of the sale of 1.0% net smelter returns royalty with respect to the Sal de los Angeles lithium project in Argentina. These shares were valued at $928,200 on the closing of the transaction. During the year ended December 31, 2019, the Company disposed of 3,471,000 shares for proceeds of $181,635 and realized loss of $269,595 and a reversal of prior year unrealized loss of $242,970 in the current period. As at December 31, 2019, the Aberdeen investment had been fully disposed. Please refer to Aberdeen’s SEDAR profile for additional information on this company.

Fura (TSXV: FURA)

FURA is a Canadian public gemstone mining and marketing company, which is engaged in the mining, exploration and acquisition of gemstone licences. FURA headquarters is located in Toronto, Canada and its administrative headquarters is located in the Gold Tower, Dubai. FURA’s current mining licences are located in Colombia, Mozambique and Australia. The Company acquired 1.7 million common shares and 0.5 million share purchase warrants of FURA for an aggregate purchase price of $588,000 in 2017 and 2018. During the year ended December 31, 2019, the Company disposed of 800,000 shares of FURA for proceeds of $160,258 realized a loss of $99,640. In addition, the FURA warrants expired unexercised with a realized loss of $35,718 and a reversal of prior year unrealized loss of $17,018. The FURA common shares were valued at $128,700 at December 31, 2019 (December 31, 2018 - $442,400) resulting in an unrealized loss of $53,803 for the year ended December 31, 2019 and a cumulative unrealized loss of $124,700. The unrealized loss for the period is due to the decrease in FURA share price since December 31, 2018. As at December 31, 2019, the FURA investment represented approximately 20% of the total assets of the Company. A 10% decline in the fair market value of FURA would result in an estimated increase in loss to Routemaster of $12,870. Please refer to FURA’s SEDAR profile for additional information on this company.

Sulliden (TSX: SMC)

Sulliden is a Canadian public company focused on generating value through the acquisition and development of quality mining projects in the Americas, in addition to identifying opportunities across industries for active investments. The Company did not sell or disposed of any shares during 2018 and 2019 and the 8,091,500 Sulliden shares were valued at $404,575 with an unrealized loss of $566,405 for the year ended December 31, 2019 and a cumulative unrealized loss of $2,207,677 as a result of the decrease in Sulliden’s share price. As at December 31, 2019, the Sulliden investment represented approximately 64% of the total assets of the Company. A 10% decline in the fair market value of Sulliden would result in an estimated increase in loss to Routemaster of $40,458. Please refer to Sulliden’s SEDAR profile for additional information on this company.

Yukoterre Resources Inc. (CSE: YT)

In Q2, 2017, the Company invested $50,000 for 1 million shares of Yukoterre Resources Inc. (“YT”). On September 20, 2019, Yukoterre successfully completed an Initial Public Offering and commenced trading on the Canadian Securities Exchange. The YT common shares were valued at $90,000 at December 31, 2019 resulting in an unrealized gain of $40,000. As at December 31, 2019, the YT investment represented 14% of the total assets of the Company. A 10% decline in the fair market value of Yukoterre Resources Inc. would result in an estimated increase in loss to Routemaster of $9,000. Please refer to Yukoterre’s SEDAR profile for additional information on this company.

GF Comstock II LP

In Q1 2017, the Company invested US$96,250 ($127,166) in a limited partnership of GF Comstock II LP. The underlying assets of the investment fund consist of a secured debenture of US$95,343 ($125,967) and 39,143 common shares of Comstock Mining Inc. of US$907 ($1,199) which has assets in the US. During 2017 and 2018, GF disposed the common shares of Comstock Mining Inc. for proceeds of $7,352 and a realized gain of $6,154, repaid US$24,867 ($31,245) and capitalized US$3,893 ($5,126) accrued interest as principal of the debenture. During the year ended December 31, 2019, GF capitalized US$4,181 ($5,686) accrued interest and repaid US$78,550 ($105,535) as full and finally settlement of the debenture after deducting certain management fee and profit as outlined in the debenture agreement.

EarthRenew Inc. (CSE: ERTH)

The Company subscribed 500,000 shares of Valencia Venture Capital Inc. (“VVI”) in December 2018 for

$110,000. The Company received 500,000 common shares of ERTH upon the closing of a reversed take over transaction (“RTO”) between VVI and ERTH. During the year ended December 31, 2019, the Company disposed of 500,000 shares of ERTH for proceeds of $20,000 with a realized loss of $90,000. Please refer to ERTH’s SEDAR profile for additional information on this company.

FINANCIAL RESULTS

The following is a discussion of the results of operations of the Company for the three and twelve months ended December 31, 2019 and 2018. They should be read in conjunction with the Company’s financial statements for the years ended December 31, 2019 and 2018 and related notes.


	Three months ended December 31,
	2019				2018
Net (loss)		$	(269,147	)	$	(3,223,787	)
Realized (loss) on investments, net			(162,982	)		(213,720	)
Unrealized (loss) on investments, net			(27,756	)		(539,563	)
Other revenue			-			(20,464	)
Interest income			3			589
Management and consulting fees			140,978			180,335
Travel and promotion			21,938			129,674
Office and rent			18,456			10,729
Accounting and legal			9,678			36,952
Regulatory and transfer agent			2,572			599
Transaction costs			525			2,357
Foreign exchange (loss) gain			(2,748	)		38,657
Gain on settlement of payable			118,483			-
Recovery (Impairment) of loan receivable			-			(1,083,640	)
(Impairment) of royalty interest			-			(1,045,000	)

For the three months ended December 31, 2019, the Company recorded a net (loss) of $(269,147) ($0.01 per basic share) compared to $(3,223,787) ($0.08 per basic share) for the three months ended December 31, 2018.

The Company had a realized and unrealized (losses) on investments of $(162,982) and $(27,756), interest income of $3 during the three months ended December 31, 2019 compared to a realized and unrealized (losses) on investment of $(213,720) and $(539,563), other revenue of $(20,464) and interest income of $589 in the prior year. The realized loss in 2019 was a result of disposal of the Company’s investments in FURA and the expiry of the BOLT and QMX warrants. The unrealized gain on investments was a result of gain on the Company’s investment in YT offset by decreased share price in FURA, SMC and decreased fair value on ARHT Media Inc. warrants during the three months ended December 31, 2019. The realized loss in 2018 was a result of disposal of the Company’s investments in AAB and FURA and repayment of GF debenture, and the unrealized loss on investments was a result of share price decreases in the all Company’s investment holdings during the three months ended December 31, 2018.

Interest income for the three months ended December 31, 2019 was $3 compared to $589 in 2018. The decreased is due to repayment of the GF loan.

Management and consulting fees decreased $39,357 during the three months ended December 31, 2019 compared to the quarter ended December 31, 2018 mainly due to reduced consulting fees.

Travel and promotion decreased $107,736 during the three months ended December 31, 2019 compared to the quarter ended December 31, 2018 due to decreased business travel and shareholder communications activities in 2019.

Office and rent increased by $7,727 during the three months ended December 31, 2019 compared to the quarter ended December 31, 2018 due to lower office costs in 2018.

Accounting and legal decreased by $27,274 during the three months ended December 31, 2019 compared to the quarter ended December 31, 2018 due to lower legal fees and audit accrual in 2019.

Regulatory and transfer agent costs increased by $1,973 during the three months ended December 31, 2019 compared to the quarter ended December 31, 2018 due to higher activities in Q4 2019.

Transaction costs decreased by $1,832 during the three months ended December 31, 2019 compared to the three months ended December 31, 2018 due to lower brokerage fees and commissions relating to the Company’s trading activities.

Foreign exchange loss was $(2,748) for the quarter ended December 31, 2019 compared to a gain of $38,657 for the three months ended December 31, 2018. The gain (loss) reflects the currency fluctuations in the Company’s loans receivable and accounts payables denominated in US dollars and British Pounds.

The Company had a gain on settlement of payable of $118,483 during the three months ended December 31, 2019 compared to the Company’s provision of $1,083,640 made in the prior year relating to the collectability of the Gear loan.

There were no provision on Royalty interest during the three months ended December 31, 2019 compared to a provision of $1,045,000 made in the prior year resulting from a review on the development plans at its Quebec Gold Royalty.

During the three months ended December 31, 2019, the Company used $(9,243) in operations of which $51,023 was provided by the disposal of investment and $133,910 was provided in the change of working capital. During the comparative three months ended December 31, 2018, the Company provided $4,840 in operations of which $242,475 was generated from sale of investment and $174,108 provided for the change of working capital.

Twelve months ended December 31, 2019 and 2018

	Twelve Months ended December 31,
	2019			2018
Net (loss)	$	(1,507,338	)	$	(9,794,067	)
Realized (loss) gain on investments, net		(708,793	)		395,635
Unrealized (loss) on investments, net		(124,807	)		(6,592,146	)
Interest income		2,040			11,387
Management and consulting fees		578,017			711,890
Travel and promotion		69,319			577,922
Office and rent		77,891			58,101
Accounting and legal		51,272			102,774
Regulatory and transfer agent		18,148			23,857
Transaction costs		3,739			30,971
Foreign exchange gain		4,125			25,212
Foreign exchange gain		118,483			-
Recovery (Impairment) of loan receivable		-			(1,083,640	)
(Impairment) of royalty interest		-			(1,045,000	)

For the twelve months ended December 31, 2019, the Company recorded a net (loss) of $(1,507,338) ($0.04 per basic share) compared to $(9,794,067) ($0.24 per basic share) for the twelve months ended December 31, 2018.

The Company had a realized and unrealized (losses) on investments of $(708,793) and $(124,807) and interest income of $2,040 during the twelve months ended December 31, 2019 compared to a realized gain and unrealized (loss) on investments of $395,635 and $(6,592,146) and interest income of $11,387 in the prior year. The realized loss in 2019 was a result of disposal of the Company’s investments in AAB, ERTH, FURA, the redemption of the GF debenture and the expired warrants in FURA, QMX, BOLT and TM. The unrealized loss on investments was a result of decreased in the share price of the Company’s investment holdings during the twelve months ended December 31, 2019. The realized gain in 2018 was a result of gain on disposal of the Company’s investments in DLI, BOLT and FURA offset by loss from the disposal of AAB, ART, QMX and TM and the repayment of GF debenture. The unrealized loss on investments in 2018 was a result of declining share price in the Company’s investment holdings and reversal of prior year unrealized gain (loss) into 2018.

Interest income decreased $9,347 during the twelve months ended December 31, 2019 compared to the prior period due to the redemption of the GF debenture.

Management and consulting fees decreased $133,873 during the twelve months ended December 31, 2019 compared to the twelve months ended December 31, 2018 due to lower managements fees in 2019.

Travel and promotion decreased $508,603 during the twelve months ended December 31, 2019 compared to the twelve months ended December 31, 2018 due to decreased business travel and shareholders communication activities in 2019.

Office and rent increased by $19,790 during the twelve months ended December 31, 2019 compared to the twelve months ended December 31, 2018 due to higher office costs in 2019.

Accounting and legal decreased $51,502 during the twelve months ended December 31, 2019 compared to the twelve months ended December 31, 2018 due to lower legal fees and lower audit fees accrual.

Regulatory and transfer agent costs decreased by $5,709 during the twelve months ended December 31, 2019 compared to the twelve months ended December 31, 2018 due to lower activities in 2019.

Transaction costs decreased by $27,232 during the twelve months ended December 31, 2019 compared to the twelve months ended December 31, 2018 due to lower brokerage fees and commissions relating to the Company’s trading activities.

Foreign exchange gain was $4,125 for the twelve months ended December 31, 2019 compared to $25,212 for the twelve months ended December 31, 2018. The gain (loss) reflects the currency fluctuations in the Company’s loans receivable and accounts payables denominated in US dollars and British Pounds .

The Company had a gain on settlement of payable of $118,483 during the twelve months ended December 31, 2019 compared to the Company’s provision of $1,083,640 made in the prior year relating to the collectability of the Gear loan.

There were no provision on Royalty interest during the twelve months ended December 31, 2019 compared to a provision of $1,045,000 made in the prior year resulting from a review on the development plans at its Quebec Gold Royalty.

During the twelve months ended December 31, 2019, the Company used $(5,711) in operations of which $458,383 was provided through the disposal of investment and $332,273 was provided in the change of working capital. During the comparative twelve months ended December 31, 2018, the Company used $(675,649) in operations of which $(884,000) was used for purchase of investments, $(848,571) used for loans provided, $2,361,045 was generated from sale of investment and $206,225 provided for the change of working capital.

LIQUIDITY AND CAPITAL RESOURCES

In management’s view, given the nature of the Company’s operations, the most relevant financial information relates primarily to current liquidity, solvency and planned expenditures. The Company’s financial success will be dependent upon the execution and development of its new investment strategy and business operations. Such execution and development may take years to complete and the amount of resulting income, if any, is difficult to determine.

Routemaster relies upon various sources of funds for its ongoing operating activities. These resources include proceeds from dispositions of investments, interest and dividend income from investments and private placement financing.

Routemaster used cash of $5,711 in its operating activities during the twelve months ended December 31, 2019. Included in cash used in operations are $458,383 generated from proceeds on sale of investments and $332,273 provided in the changes of working capital. As at December 31, 2019, the Company’s sources of funds include the estimated fair value of its equity portfolio investments of $623,275, cash of

$4,762 offset by liabilities of $1,802,024.

Currency Risk

Currency risk is the risk to the Company’s earnings that arises from fluctuations of foreign exchange rates and the degree of volatility of these rates.

As at December 31, 2019 and 2018, the Company had the following financial assets and liabilities denominated in foreign currencies:

December 31, 2019

	United States Dollars			British Pound
Cash	$	129			-
Accounts payable and accrued liabilities	$	(58,446	)		(75,957	)
Net assets	$	(57,317	)		(75,957	)

	United States Dollars			British Pound
Cash	$	75		$	-
Interest receivable		3,624			-
Private investment		101,454			-
Accounts payable and accrued liabilities		(84,126	)		(77,129	)
Net assets (liabilities)	$	21,027		$	(77,129	)

At December 31, 2019, United States Dollar was converted at a rate of $1.2988 (December 31, 2018 - $1.3642) Canadian Dollars to $1.00 US Dollar. British Pounds was converted at a rate of $1.7174 (December 31, 2018 - $1.7439) Canadian Dollars to 1.00 British Pound.

Capital Management

The Company considers its capital to consist of share capital, equity reserve and deficit. The Company’s objectives when managing capital are:

a)	to allow the Company to respond to changes in economic and/or marketplace conditions by maintaining the Company’s ability to purchase new investments;

b)	to give shareholders sustained growth in value by increasing shareholders’ equity; while

c)	taking a conservative approach towards financial leverage and management of financial risks.

The Company’s management reviews its capital structure on an on-going basis and makes adjustments to it in light of changes in economic conditions and the risk characteristics of its underlying investments. The Company’s current capital is composed of its shareholders’ equity and, to-date, has adjusted or maintained its level of capital by:

a)	raising capital through equity financings; and

b)	realizing proceeds from the disposition of its investments

The Company is not subject to any externally imposed capital requirements other than of the TSXV which has certain working capital and financial resource requirements to be available to maintain operations and cover general and administration expenses. The TSXV will consider, among other things, a listed issuer's ability to meet its obligations as they come due, as well as its working capital position, quick asset position, total assets, capitalization, cash flow and earnings in the financial statements regarding the listed issuer's ability to continue as a going concern. There were no changes to the Company’s capital management

during the year ended December 31, 2019. As of December 31, 2019, the Company may not be compliant with the policies of the TSXV. The impact of any such violation is not known and is ultimately dependent on the discretion of the TSXV.

Commitments

Management Contract Commitments

The Company is party to certain management contracts. These contracts require that additional payments of approximately $912,000 be made upon the occurrence of certain events such as a change of control. Minimum commitments remaining under these contracts were approximately $289,405, all due within one year.

Legal Commitments

The Company is, from time to time, involved in various claims and legal proceedings. The Company cannot reasonably predict the likelihood or outcome of these activities. The Company does not believe that adverse decisions in any pending or threatened proceedings related to any matter, or any amount which may be required to be paid by reasons thereof, will have a material effect on the financial condition or future results of operations. As at December 31, 2019, no amounts have been accrued related to such matters.

A former officer of the Company has initiated a legal action seeking approximately $450,000 for fees owed plus interest. The Company is currently defending the matter and is reviewing its options with regards to this action.

SUMMARY OF QUARTERLY RESULTS

The following is a summary of the Company’s financial results for the eight most recently completed quarters:

	31-Dec			30-Sep			30-Jun			31-Mar			31-Dec			30-Sep			30-Jun			31-Mar
	2019			2019			2019			2019			2018			2018			2018			2018
Revenue	$	(190,735	)	$	107,411		$	(450,120	)	$	(298,116	)	$	(773,158	)	$	(1,273,106	)	$	(2,480,947	)	$	(1,657,913	)
Net (loss) income	$	(269,147	)	$	(92,534	)	$	(643,996	)	$	(501,661	)	$	(3,223,787	)	$	(1,584,911	)	$	(2,798,068	)	$	(2,187,301	)
(Loss) per Share - basic	$	(0.01	)	$	(0.00	)	$	(0.02	)	$	(0.01	)	$	(0.08	)	$	(0.04	)	$	(0.07	)	$	(0.05	)
(Loss) per Share - diluted	$	(0.01	)	$	(0.00	)	$	(0.02	)	$	(0.01	)	$	(0.08	)	$	(0.04	)	$	(0.07	)	$	(0.05	)
Total Assets	$	636,459		$	898,625		$	901,094		$	1,453,913		$	1,946,695		$	4,716,392		$	6,188,312		$	9,081,813
Total Long Term Liabilities	$Nil			$Nil			$Nil			$Nil			$Nil			$Nil			$Nil			$Nil

SELECTED ANNUAL INFORMATION

The highlights of financial data for the Company for the three most recently completed financial years are as follows:

	31-Dec-19			31-Dec-18			31-Dec-17
(a) Net Sales		-			-			-
(b) Net Income (Loss) and Comprehensive Income (Loss)
(i) Total income (loss)	$	(1,507,338	)	$	(9,794,067	)	$	4,089,673
(ii) (Loss) income per share – basic and diluted	$	(0.04	)	$	(0.24	)	$	0.17
(c) Total Assets	$	636,459		$	1,946,695		$	11,335,002
(d) Total Liabilities	$	1,802,024		$	1,604,922		$	1,199,162

There are no off-balance sheet arrangements to which the Company is committed.

COMPENSATION OF DIRECTORS AND OFFICERS

During the year ended December 31, 2019, the Company paid or accrued $Nil (2018 - $140,699) to directors of the Company and $190,248 (2018 - $92,143) to officers of the Company.

At December 31, 2019, the Company had $96,239 (December 31, 2018 - $Nil) owing to its current key management and $655,296 (December 31, 2018 - $679,333) owing to its former key management. Such amounts are unsecured, non-interest bearing, with no fixed terms of payment or “due on demand”.

More detailed information regarding the compensation of officers and directors of the Company is disclosed in the management information circular and such information is incorporated by reference herein. The management information circular is available under profile of the Company on SEDAR at www.sedar.com

RELATED PARTY TRANSACTIONS

The Company’s directors and officers may have investments in and hold management and/or director and officer positions in some of the investments that the Company holds. The following is a list of total investments and the nature of the relationship of the Company’s directors or officers with the investment as of December 31, 2019 and 2018.

Investment	Nature of relationship	Estimated Fair Value		% of FV

ARTH Media Inc.	Director (William Steers), and common shareholders /warrant holders	$	-		0.0	%
Fura Gems Inc.	Officer (Ryan Ptolemy), and common shareholders /warrant holders		128,700		20.6	%
Sulliden Mining Capital Inc.	Director (Stan Bharti), and common shareholders / warrant holders		404,575		65	%
Yukoterre Resources Inc.	Former Director and Officer (Fred Leigh), Officer (Kenny Choi) and common shareholders		90,000		14.4	%
Total investment - December 31, 2019		$	623,275		100.0	%

Investment	Nature of relationship	Estimated Fair Value		% of FV

Aberdeen International Inc.	Director and officer (Stan Bharti), Officer (Ryan Ptolemy), and common shareholders /warrant holders	$	208,260		12.3	%
Fura Gems Inc.	Officer (Ryan Ptolemy), and common shareholders /warrant holders		461,100		27.2	%
Sulliden Mining Capital Inc.	Director (Stan Bharti), and common shareholders / warrant holders		970,980		57.1	%
Total other five investments	Common shareholders/warrant holders		57,779		3.4	%
Total investment - December 31, 2018		$	1,698,119		100.0	%

The Company has a diversified base of investors. To the Company’s knowledge, Forbes holds more than 10% of the Company’s common shares as at December 31, 2019 and 2018.

During the year ended December 31, 2019, the Company entered into the following transactions in the ordinary course of business with related parties that are not subsidiaries of the Company.

•

The Company incurred $120,000 (2018 - $228,289) of expenses for its proportionate share of shared office costs with other corporations that may have common directors and officers. The costs associated with this space are administered by 2227929 Ontario Inc. As at December 31, 2019, the Company had a payable balance of $439,007 (December 31, 2018 - $340,250) with 2227929 Ontario Inc. to cover shared expenses. Such amounts are unsecured, non-interest bearing, with no fixed terms of payment and due on demand. Fred Leigh, a former officer and director of the Company, is also a director of 2227929 Ontario Inc.

•

The Company incurred $120,071 (2018 - $120,000) for administration costs with Forbes. In August 2017, Forbes became an insider of the Company owning approximately 34.9%, at the time, (approximately 27.9% at December 31, 2019) outstanding shares of the Company through an acquisition of Quebec Gold royalty interests. The Company is also part of the Forbes Group of Companies and continue to receive the benefits of such membership, including access to mining professionals, advice from Stan Bharti, the Executive Chairman of Forbes and strategic advice from the Forbes Board of Advisors. An administration fee of $10,000 per month is charged by Forbes pursuant to a consulting agreement. As at December 31, 2019, the Company had a payable balance of $135,680 (December 31, 2018 - $45,200) with Forbes. Such amounts are unsecured, non-interest bearing, with no fixed terms of payment and due on demand.

•

At December 31, 2019, the Company had accounts payable and accrued liabilities of $Nil (December 31, 2018 - $118,483) for reimbursable expenses owed to Brazil Potash Crop. (“BPC”). During the year ended December 31, 2019, the payables were forgiven by BPC. Stan Bharti, executive chairman of Forbes, is an insider of Routemaster, is also a director of BPC. Ryan Ptolemy, an officer of Routemaster, is also an officer of BPC.

•	Included in accounts payable and accrued liabilities were expenses of GBP44,228 ($75,957) (December 31, 2018 - $77,129) expenses owed to Vik Pathak, a former director and officer of Routemaster.

•	Included in amounts receivable was $Nil (2017 - $110,000) pertaining to a subscription of common shares of EarthRenew Inc. (“EarthRenew”). Ryan Ptolemy, an officer of Routemaster, is also an officer of EarthRenew

All of the above noted transactions have been in the normal course of operations and are recorded at their exchange amounts, which is the consideration agreed upon by the related parties.

MANAGEMENT CHANGE

On October 9, 2019, the Company announced the appointment of James Lanthier as President, Chief Executive Officer and a director of the Company.

Mr. Lanthier is a seasoned technology and media executive with a strong background in M&A and finance. His prior public company roles include CEO of Tangelo Games, as COO and a member of the founding management team of Mood Media, and COO / CFO of Fun Technologies, sold to Liberty Media. Mr. Lanthier has extensive capital markets and M&A experience and, additionally, has served as Non-Executive Director of a number of public companies.

FINANCIAL INSTRUMENTS AND OTHER INSTRUMENTS

Fair value

IFRS requires that the Company disclose information about the fair value of its financial assets and liabilities. Fair value estimates are made at the statements of financial position date, based on relevant market information and information about the financial instrument. These estimates are subjective in nature and involve uncertainties in significant matters of judgment and therefore cannot be determined with precision. Changes in assumptions could significantly affect these estimates.

The Company has determined the carrying values of its financial instruments as follows:

i.	The carrying values of cash, amounts receivable, accounts payable and accrual liabilities approximate their fair values due to the short-term nature of these instruments.

ii.	Public and private investments are carried at amounts in accordance with the Company’s accounting policies as set out in Note 2 of the Company’s audited financial statements.

iii.	Prior to maturity, the outstanding loans receivable are carried at their discounted value. Following their maturity, loans receivable are carried at their estimated realizable value.

The following table illustrates the classification and hierarchy of the Company's financial instruments, measured at fair value in the statements of financial position as at December 31, 2019 and 2018.

Investments, fair value	Level 1 (Quoted Market price)	Level 2 (Valuation technique - observable market Inputs)	Level 3 (Valuation technique - non-observable market inputs)	Total
	$	$	$	$
Publicly traded investments	623,275	-	-	623,275
December 31, 2019	623,275	-	-	623,275
Publicly traded investments	1,621,640	-	-	1,621,640
Non-trading warrants on public investments	-	26,479	-	26,479
Private investment	-	101,454	50,000	151,454
December 31, 2018	1,621,640	127,933	50,000	1,799,573

Level 2 Hierarchy

During the year ended December 31, 2019, the 500,000 ERTH common shares had a hold period until May 10, 2019. These shares were transferred from Level 2 to Level 1 as the hold period expired and were subsequently sold.

During the year ended December 31, 2018, the common shares of QMX Gold Corporation, Pacific Rim Cobalt Corp. and ARHT Media Inc. were transferred from Level 2 to Level 1 after the 4-month hold period and sold.

Level 3 Hierarchy

The following table presents the changes in fair value measurements of financial instruments classified as Level 3 during the periods ended December 31, 2019 and 2018. These financial instruments are measured at fair value utilizing non-observable market inputs. The net realized losses and net unrealized gains are recognized in the statements of loss.

Investments, fair value for the years ended	December 31, 2019			December 31, 2018

Balance, beginning of year	$	50,000		$	960,000
Transferred to Level 1		(50,000	)		(910,000	)
Balance, end of year	$	-		$	50,000

On September 20, 2019, Yukoterre successfully completed an Initial Public Offering and commenced trading on the Canadian Securities Exchange.

As of December 31, 2019, the Company had no private investment.

Within Level 3, the Company includes private company investments that are not quoted on an exchange. The key assumptions used in the valuation of these instruments include (but are not limited to) the value at which a recent financing was done by the investee, company-specific information, trends in general market conditions and the share performance of comparable publicly-traded companies. The following table presents the fair value, categorized by key valuation techniques and the unobservable inputs used within Level 3 as at December 31, 2018.

Description	Fair value		Valuation technique	Significant unobservable input(s)	Range of significant unobservable input(s)

Yukoterre Resources Inc.	$	50,000	Recent financing	Marketability of shares	0% discount

OUTSTANDING SHARE DATA

Authorized unlimited common shares without par value – 41,513,631 are issued and outstanding as at February 26, 2020.

Authorized 20,000,000 preferred shares, at 9% cumulative dividends, non-voting, non-participating, non- redeemable, non-retractable, and non-convertible – 4,500,000 are issued and outstanding as at February 26, 2020.

Stock options and convertible securities outstanding as at February 26, 2020 are as follows:

Stock Options:

2,065,000 with exercise price ranging from $0.11 to $0.35 expiring between September 29, 2021 and December 18, 2022.

Warrants:

3,846,153 with exercise price ranging of $0.20 expiring June 12, 2022.

RISKS AND UNCERTAINTIES

The Company is exposed to a number of risks, which even a combination of careful evaluation, experience and knowledge may not eliminate. The following outlines certain risk factors specific to the Company. These risk factors could materially affect the Company’s future results and could cause actual events to differ materially from those described in forward–looking information relating to the Company.

No Operating History as an Investment Issuer

The Company does not have any record of operating as an investment issuer or undertaking merchant banking operations. The Company will be subject to all of the business risks and uncertainties associated with any new business enterprise, including the risk that the Company will not achieve its financial objectives as estimated by management. Furthermore, past successes of management or the Board does not guarantee future success.

Portfolio Exposure and Sensitivity to Political and Macro-Economic Conditions

Given the nature of the Company’s current and proposed investment activities, the results of operations and financial condition of the Company will be dependent upon the market value of the securities that will comprise the Company’s investment portfolio. Market value can be reflective of the actual or anticipated operating results of companies in the portfolio and/or the general market conditions that affect a particular sector. Various factors affecting a sector could have a negative impact on the Company’s portfolio of investments and thereby have an adverse effect on its business. Additionally, the Company may invest in small-cap businesses that may never mature or generate adequate returns or may require a number of years to do so. This may create an irregular pattern in the Company’s investment gains and revenues (if any).

Macro factors such as fluctuations in commodity prices and global political and economic conditions could also negatively affect the Company’s portfolio of investments. The Company may be adversely affected by the falling share prices of the securities of investee companies; as such, share prices may directly and negatively affect the estimated value of the Company’s portfolio of investments. Moreover, company- specific risks could have an adverse effect on one or more of the investments that may comprise the portfolio at any point in time. Company-specific and industry specific risks that may materially adversely affect the Company’s investment portfolio may have a materially adverse impact on operating results. The factors affecting current macro-economic conditions are beyond the control of the Company.

Cash Flow, and Revenue and Liquidity

The Company’s revenue and cash flow is generated primarily from financing activities, dividends and/or royalty payments on investments and proceeds from the disposition of investments. The availability of these sources of income and the amounts generated from these sources are dependent upon various factors, many of which are outside of the Company’s direct control. The Company’s liquidity and operating results may be adversely affected if its access to capital markets is hindered, whether as a result of a downturn in market conditions generally or to matters specific to the Company, or if the value of its investments decline, resulting in losses upon disposition.

Private Issuers and Illiquid Securities

The Company may invest in securities of private issuers, illiquid securities of public issuers and publicly- traded securities that have low trading volumes. The value of these investments may be affected by factors such as investor demand, resale restrictions, general market trends and regulatory restrictions. Fluctuation in the market value of such investments may occur for a number of reasons beyond the control of the Company and there is no assurance that an adequate market will exist for investments made by the Company. Many of the investments made by the Company may be relatively illiquid and may decline in price if a significant number of such investments are offered for sale by the Company or other investors.

Trading Price of the Common Shares Relative to Net Asset Value

The Company is neither a mutual fund nor an investment fund and, due to the nature of its business and investment strategy and the composition of its investment portfolio, the market price of the Common Shares, at any time, may vary significantly from the Company’s net asset value per Common Share. This risk is separate and distinct from the risk that the market price of the Common Shares may decrease.

Concentration of Investments

Other than as described in the Company’s filings under its profile on SEDAR, there are no restrictions on the proportion of the Company’s funds and no limit on the amount of funds that may be allocated to any particular investment. The Company may participate in a limited number of investments and, as a consequence, its financial results may be substantially adversely affected by the unfavourable performance of a single investment. Completion of one or more investments may result in a highly concentrated investment in a particular company, commodity or geographic area, resulting in the performance of the Company depending significantly on the performance of such company, commodity or geographic area.

The Company’s current portfolio of assets is highly concentrated in mining company equities which operate in developing countries. Investments in such equities are subject to significant risks inherent to the mining industry and conducting business in developing countries, which may be subject to additional risks, such as significant social unrest, corruption, criminality, terrorism, acts of war, expropriation, and the absence of the rule of law. Mining industry stocks have been known to be highly volatile and subject to significant fluctuations. In addition, the Company is looking to diversify and focus its investment activities in the technology sector and green and renewable energy sectors. There is no assurance the Company will be successful in its diversification efforts. These industries are also subject to significant fluctuations and uncertainties. In the event the Company’s investment become concentrated in any such sectors, it will be subject to the risks inherent to such sectors.

Available Opportunities and Competition for Investments

The success of the Company’s operations will depend upon, among other things: (a) the availability of appropriate investment opportunities; (b) the Company’s ability to identify, select, acquire, grow and exit those investments; and (c) the Company’s ability to generate funds for future investments. The Company can expect to encounter competition from other entities having similar investment objectives, including institutional investors and strategic investors. These groups may compete for the same investments as the Company, will have a longer operating history and may be better capitalized, have more personnel and have different return targets. As a result, the Company may not be able to compete successfully for investments. In addition, competition for investments may lead to the price of such investments increasing, which may further limit the Company’s ability to generate desired returns. There can be no assurance that there will be a sufficient number of suitable investment opportunities available to invest in or that such investments can be made within a reasonable period of time. There can also be no assurance that the Company will be able to identify suitable investment opportunities, acquire them at a reasonable cost or achieve an appropriate rate of return. Identifying attractive opportunities is difficult, highly competitive and involves a high degree of uncertainty. Potential returns from investments will be diminished to the extent that the Company is unable to find and make a sufficient number of investments. These competitors may limit the Company’s opportunities to acquire interests in investments that are attractive to the Company. The Company may be required to invest otherwise than in accordance with its investment policy and strategy in order to meet its investment objectives. If the Company is required to invest other than in accordance with its investment policy and strategy, its ability to achieve its desired rates of return on its investments may be adversely affected.

Share Prices of Investments

Investments in securities of public companies are subject to volatility in the share prices of such companies. There can be no assurance that an active trading market for any of the subject shares comprising the Company’s investment portfolio is sustainable. The trading prices of such subject shares could be subject to wide fluctuations in response to various factors beyond the Company’s control, including, but not limited to, quarterly variations in the subject companies’ results of operations, changes in earnings, results of exploration and development activities, estimates by analysts, conditions in the resource industry and general market or economic conditions. In recent years, equity markets have experienced extreme price and volume fluctuations. These fluctuations have had a substantial effect on market prices, often unrelated to the operating performance of the specific companies. Such market fluctuations could adversely affect the market price of the Company’s investments.

Dependence on Management, Directors and Investment Committee

The Company is dependent upon the efforts, skill and business contacts of key members of management and the Board for, among other things, the information and deal flow they generate during the normal course of their activities and the synergies that exist amongst their various fields of expertise and knowledge. Accordingly, the Company’s success may depend upon the continued service of these individuals to the Company. The loss of the services of any of these individuals could have a material adverse effect on the Company’s revenues, net income and cash flows and could harm its ability to maintain or grow assets and raise funds.

From time to time, the Company will also need to identify and retain additional skilled management to efficiently operate its business. Recruiting and retaining qualified personnel is critical to the Company’s success and there can be no assurance of its ability to attract and retain such personnel. If the Company is not successful in attracting and training qualified personnel, the Company’s ability to execute its business model and growth strategy could be affected, which could have a material and adverse impact on its profitability, results of operations and financial condition.

Additional Financing Requirements

The Company may have ongoing requirements for funds to support its growth and may seek to obtain additional funds for these purposes through public or private equity, or debt financing. There are no assurances that additional funding will be available at all, on acceptable terms or at an acceptable level. Any limitations on the Company’s ability to access the capital markets for additional funds could have a material adverse effect on its ability grow its investment portfolio.

No Guaranteed Return

There is no guarantee that an investment in the securities of the Company will earn any positive return in the short-term or long-term. The task of identifying investment opportunities, monitoring such investments and realizing a significant return is difficult. Many organizations operated by persons of competence and integrity have been unable to make, manage and realize a return on such investments successfully. The past performance of management of the Company provides no assurance of its future success.

Potential Conflicts of Interest

Certain of the directors and officers of the Company are or may, from time to time, be involved in other financial investments and professional activities that may on occasion cause a conflict of interest with their duties to the Company. These include serving as directors, officers, advisors or agents of other public and private companies, including companies involved in similar businesses to the Company or companies in which the Company may invest, managing of investment funds, purchases and sales of securities and investment and management counselling for other clients. Such conflicts of the Company’s directors and officers may result in a material and adverse effect on the Company’s results of operations and financial condition.

Due Diligence

The due diligence process undertaken by the Company in connection with investments may not reveal all facts that may be relevant in connection with an investment. Before making investments, the Company will conduct due diligence that it deems reasonable and appropriate based on the facts and circumstances applicable to each investment. When conducting due diligence, the Company may be required to evaluate important and complex business, financial, tax, accounting, environmental and legal issues. Outside consultants, legal advisors, accountants and investment banks may be involved in the due diligence process in varying degrees depending on the type of investment. Nevertheless, when conducting due diligence and making an assessment regarding an investment, the Company will rely on resources available, including information provided by the target of the investment and, in some circumstances, third- party investigations. The due diligence investigation that is carried out with respect to any investment opportunity may not reveal or highlight all relevant facts that may be necessary or helpful in evaluating such investment opportunity. Moreover, such an investigation will not necessarily result in the investment being successful.

Conflicts of Interest

Certain of the Company’s directors and officers serve or may agree to serve as directors or officers of other companies and, to the extent that such other companies may participate in ventures in which the Company may participate, the directors of Routemaster may have a conflict of interest in negotiating and concluding terms respecting such participation.

The Company has no restrictions with respect to investing in companies or other entities in which a member of the Company’s management or Board may already have an interest or involvement. However, prior to the Company making an investment, all members of senior management and the Board shall be obligated to disclose any such other interest or involvement. In the event that a conflict is determined to exist, the Company may only proceed after receiving approval from disinterested members of the Board.

The Company is also subject to the “non arm’s length” transaction policies of the TSX Venture Exchange, which mandates disinterested shareholder approval for certain transactions.

The management and directors of the Company may be involved in other activities which may on occasion cause a conflict of interest with his or her duties to the Company. These include serving as directors, officers, promoters, advisors or agents of other public and private companies, including of companies in which the Company may invest, or being shareholders or having an involvement or financial interest in one or more shareholders of existing or prospective investee companies of the Company. The management and directors of the Company may also engage from time to time in transactions with the Company where any one or more of such persons is acting in his or her capacity as financial or other advisor, broker, intermediary, principal or counterparty.

The management and directors of the Company are aware of the existence of laws governing the accountability of directors and officers for corporate opportunities and requiring disclosure of conflicts of interest, and the Company will rely upon such laws in respect of any conflict of interest. Further, to the extent that management or directors of the Company engage in any transactions with the Company, such transactions will be carried out on customary and arm’s length commercial terms.

Non-controlling Interests

The Company’s investments include equity securities of companies that it does not control. Such instruments and securities may be acquired through trading activities or through purchases of securities from the issuer. These investments are subject to the risk that the company in which the investment is made may make business, financial or management decisions with which Routemaster does not agree or that the majority stakeholders or the management of the investee Company may take risks or otherwise act in a manner that does not serve the Company’s interests. If any of the foregoing was to occur, the values of the Company’s investments could decrease and its financial condition, results of operations and cash flow could suffer as a result.

Litigation

Routemaster has entered into legally binding agreements with various third parties on a consulting basis. The interpretation of the rights and obligations that arise from such agreements is open to interpretation and Routemaster may disagree with the position taken by the various other parties resulting in a dispute that could potentially initiate litigation and cause Routemaster to incur legal costs in the future.

Given the speculative and unpredictable nature of litigation, the outcome of any such disputes could have a material adverse effect on Routemaster.

SIGNIFICANT ACCOUNTING POLICIES

The Company’s significant accounting policies can be found in Note 2 of its annual audited financial statements.

New accounting change

During the year ended December 31, 2019, the Company adopted a number of new IFRS standards, interpretations, amendments and improvements of existing standards. These included IFRS 16. These new standards and changes did not have any material impact on the Company’s annual financial statements.

IFRS 16 – Leases (“IFRS 16”) was issued in January 2016 and replaces IAS 17 – Leases as well as some lease related interpretations. With certain exceptions for leases under months in length or for assets of low value, IFRS 16 states that upon lease commencement a lessee recognises a right-of-use asset and a lease liability. The right-of-use asset is initially measured at the amount of the liability plus any initial direct costs. After lease commencement, the lessee shall measure the right-of-use asset at cost less accumulated depreciation and accumulated impairment. A lessee shall either apply IFRS 16 with full retrospective effect or alternatively not restate comparative information but recognise the cumulative effect of initially applying IFRS 16 as an adjustment to opening equity at the date of initial application. IFRS 16 requires that lessors classify each lease as an operating lease or a finance lease. A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership of an underlying asset. Otherwise it is an operating lease. IFRS 16 is effective for annual periods beginning on or after January 1, 2019. This new standard did not have any material impact on the Company’s condensed interim financial statements.

Future accounting change

IAS 1 – Presentation of Financial Statements (“IAS 1”) and IAS 8 – Accounting Policies, Changes in Accounting Estimates and Errors (“IAS 8”) were amended in October 2018 to refine the definition of materiality and clarify its characteristics. The revised definition focuses on the idea that information is material if omitting, misstating or obscuring it could reasonably be expected to influence decisions that the primary users of general purpose financial statements make on the basis of those financial statements. The amendments are effective for annual reporting periods beginning on or after January 1, 2020.

CRITICAL ACCOUNTING ESTIMATES AND ASSUMPTIONS

The preparation of the Company’s condensed interim financial statements in conformity with IFRS requires management to make judgments, estimates and assumptions that affect the reported amounts of assets, liabilities and disclosure of contingent assets and liabilities at the date of the condensed interim financial statements and reported amounts of revenues and expenses during the reporting period. Such estimates and assumptions are continuously evaluated and are based on management’s experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Actual outcomes can differ from these estimates. The impacts of such estimates are pervasive throughout the financial statements, and may require accounting adjustments based on future occurrences. Revisions to accounting estimates are recognized in the period in which the estimate is revised and the revision affects both current and future periods.

Information about critical judgments and estimates in applying accounting policies that have the most significant effect on the amounts recognized in the condensed interim financial statements are as follows:

Fair value of financial derivatives

Investments in options and warrants which are not traded on a recognized securities exchange do not have a readily available market value. When there are sufficient and reliable observable market inputs, a valuation technique is used; if no such market inputs are available, the warrants and options are valued at intrinsic value.

Fair value of investment in securities not quoted in an active market or private company investments Where the fair values of financial assets and financial liabilities recorded on the statement of financial position cannot be derived from active markets, they are determined using a variety of valuation techniques.

The inputs to these models are derived from observable market data where possible, but where observable market data are not available, judgment is required to establish fair values.

Share-based payments

The Company uses the Black-Scholes option pricing model to fair value options in order to calculate share- based compensation expense. The Black-Scholes model involves six key inputs to determine fair value of an option: risk-free interest rate, exercise price, market price of the Company’s shares at date of issue, expected dividend yield, expected life, and expected volatility. Certain of the inputs are estimates which involve considerable judgment and are, or could be, affected by significant factors that are out of the Company’s control. The Company is also required to estimate the future forfeiture rate of options based on historical information in its calculation of share based compensation expense.

Investment entity

Management has determined that the Company qualifies for the exemption from consolidation given that the Company has the following typical characteristics of an investment entity:

(a)	obtains funds from one or more investors for the purpose of providing those investor(s) with investment management services;

(b)	commits to its investor(s) that its business purpose is to invest funds solely for returns from capital appreciation, investment income, or both; and

(c)	measures and evaluates the performance of substantially all of its investments on a fair value basis.