TSO3 Takes Action to Preserve Cash While Awaiting US Regulatory Clearance
Ticker: TSX - TOS
Shares Outstanding: 72,888,182
QUÉBEC CITY, Jan. 15, 2014 /CNW Telbec/ - TSO3 Inc. (TSX: TOS) ("TSO3" or the "Company") an innovator in sterilization technology for medical devices in healthcare settings, today announced that in an effort to reduce the current cash burn rate and preserve the Company's cash resources while it awaits final clearance in the United States for its primary product, the STERIZONE® 125L+ low temperature Sterilizer, the Company will be conducting a collective dismissal, as defined by the Labour Standards Commission. Once this reorganization has been fully implemented, TSO3 will have a substantially smaller workforce.
"Obtaining US regulatory clearance remains the Company's primary objective. Achieving this objective has taken more time than we had anticipated. Efforts and investments to further enhance the technology as well as extend the portfolio of products have been impacted by this delay. As a result, we have decided to focus all efforts solely on US market clearance for the time being. Other projects will be suspended to assure that the Company's current cash resources will be sufficient until the US clearance is obtained and US commercialization efforts are underway post clearance." said R.M (Ric) Rumble, President and CEO. The proposed reorganization forms part of the Company's ongoing strategic review initiative, which will continue over the coming quarter.
"The Company and US regulatory agency remain active in pursuing clearance for the STERIZONE 125L+ Sterilizer. This action does not suggest that we are less confident in the products ability to be cleared. It does recognize that the timing of such clearance is not under our control. While we strongly regret that this action impacts loyal and longstanding TSO3 employees, we believe that this decision is in the best interest of the remaining employees and shareholders" concluded Mr. Rumble.
TSO3, founded in Québec City in 1998, specializes in the research and development of innovative, high-performance medical instrument sterilization technology with high commercial potential. TSO3 designs products for sterile processing areas in the hospital environment and offers an advantageous replacement solutions to other low temperature sterilization processes currently used in hospitals. For more information about TSO3, visit the Company's Web site at www.tso3.com
The statements in this release and oral statements made by representatives of TSO3 relating to matters that are not historical facts (including, without limitation, those regarding the timing or outcome of any financing undertaken by TSO3) are forward-looking statements that involve certain risks, uncertainties and hypotheses, including, but not limited to, general business and economic conditions, the condition of the financial markets, the ability of TSO3 to obtain financing on favourable terms and other risks and uncertainties.
The TSX has neither approved nor disapproved the information contained herein and accepts no responsibility for it.
SOURCE TSO3 Inc.
Image with caption: "TSO3 Takes Action to Preserve Cash While Awaiting US Regulatory Clearance (CNW Group/TSO3 Inc.)". Image available at: http://photos.newswire.ca/images/download/20140115_C8706_PHOTO_EN_35512.jpgFor further information:
R.M. (Ric) Rumble
President and CEO
(418) 651-0003, Ext. 254