QUÉBEC CITY, Feb. 8, 2016 /CNW Telbec/ - TSO3 Inc. (TSX: TOS), an innovator in sterilization technology for medical devices in healthcare settings, today announced that all of the Company's outstanding warrants with a $1.875 exercise price had either been exercised or expired as of February 4, 2016. On January 5, 2016, TSO3 announced it was accelerating the expiry date, to February 4, 2016, of the warrants it had issued on March 2015 in association with a bought deal financing.
Of the 8.5 million warrants subject to expiry acceleration as at January 5, 2016, 7.2 million, or 85%, were exercised and 1.3 million expired unexercised. Each warrant had an exercise price of $1.875 per share and the total warrant proceeds were $13.5 million as a result of the exercises since January 5, 2016, and $14.8 million since the warrants were originally issued.
As of February 5, 2016, the Company had 90.5 million shares outstanding and CAD$32.8 million in cash and short term investments, when including all proceeds from warrant exercises. This cash balance is inclusive of the US$7.5 million received under an exclusive distribution agreement announced last November for its STERIZONE® VP4 Sterilizer. As of February 5, 2016, $10 million in warrant proceeds were receivable from the Company's transfer agent and the Company expects to receive these funds shortly.
In addition, the Company has received $253,000 to date in 2016 in association with the issuance of 202,400 shares from exercised broker warrants. As of February 5, 2016, TSO3's only remaining outstanding warrants are 257,600 broker warrants, representing the same number of shares subject to issuance. These warrants have an exercise price of $1.25 per share and expire on March 6, 2016.
"We now have a strong cash position, no outstanding debt and no outstanding warrants, other than a few remaining broker warrants," said TSO3's Chief Financial Officer, Glen Kayll. "Our resources will help us ramp up the production and delivery of our STERIZONE® VP4 Sterilizer and related accessories and consumables in fulfilment of the orders we have received from Getinge Infection Control, our global distribution partner."
About the STERIZONE® VP4 low temperature sterilizer
The STERIZONE® VP4 Sterilizer developed by TSO3 is a dual sterilant, low temperature sterilization system that utilizes vaporized hydrogen peroxide (H2O2) and ozone. Its single cycle can sterilize a large number and wide range of compatible devices, thereby allowing for a cost effective and error-free sterilization process. TSO3's unique Dynamic Sterilant Delivery SystemTM automatically adjusts the quantity of injected sterilant based on the load composition, weight and temperature. With its large 75 lb load capacity and a short cycle time, the STERIZONE® VP4 Sterilizer can enhance throughput and lower sterilization cost. The STERIZONE® VP4 Sterilizer was cleared for commercialization in the United States in December 2014.
More information about the STERIZONE® VP4 Sterilizer is available through TSO3's website, under the Products section: http://www.tso3.com/en/products/sterizone-vp4/
Founded in 1998, TSO3's activities encompass the sale, production, maintenance, research, development and licensing of sterilization processes, related consumable supplies and accessories for heat-sensitive medical devices. The Company designs products for sterile processing areas in the hospital environment that offer an advantageous replacement solution to other low temperature sterilization processes currently used in hospitals. It also offers services related to the maintenance of sterilization equipment and compatibility testing of medical devices with such processes.
For more information about TSO3, visit the Company's web site at www.tso3.com or contact Liolios Group at 949 574-3860 or email TOS@liolios.com or Renmark Financial Communications at 416 644-2020 or 514 939-3989 or by email at email@example.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.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities, in any jurisdiction in which such offer, solicitation or sale would be unlawful.
The TSX has neither approved nor disapproved the information contained herein and accepts no responsibility for it.
SOURCE TSO3 Inc.
For further information: Company Contact: TSO, Inc., R.M. (Ric) Rumble, President and CEO, Tel: 418 651-0003, Email: firstname.lastname@example.org, TSO, Inc., Glen Kayll, CFO, Tel: 418 651-0003, Email: email@example.com; Investor Relations: Liolios Group, Inc., Ron Both, Tel: 949 574-3860, TOS@liolios.com, Renmark Financial Communications Inc., Barry Mire, Tel: 416 644-2020 or 514 939-3989, firstname.lastname@example.org