TSO3 announces filing of final short form prospectus

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    Ticker: TSX - TOS
    Shares Outstanding: 47,891,957
    

QUÉBEC CITY, Feb. 24 /CNW Telbec/ - TSO3 Inc. ("TSO3") (TSX: TOS) is pleased to announce that it has filed a final short form prospectus with the securities regulatory authorities in all provinces of Canada with respect to a previously announced public offering of 10,000,000 common shares (the "Common Shares") for gross proceeds to the Company of C$16 million. The prospectus also qualifies for the distribution of 150,000 Common shares sold by Simon Robitaille, one of the Company's founders and Chief Scientific Officer, for gross proceeds of $240,000. The offering is being made through a syndicate of underwriters led by Canaccord Adams and including Versant Partners. Closing of the offering is expected to occur on or about March 2, 2010.

The Company has granted the Underwriters an over-allotment option, exercisable for a period of 30 days following the closing of the Offering, to purchase up to an additional 15% of the number of common shares issued from Treasury pursuant to the Offering, at the offering price of $1.60.

The proceeds from the Offering will be used to support the global commercialization efforts for the STERIZONE(R) 125L+ Sterilizer through its global channel partner, 3M. Additionally, the Company will use a portion of the net proceeds to fund new product initiatives and for working capital purposes.

The securities offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. 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 the securities in any State in which such offer, solicitation or sale would be unlawful.

About TSO3

TSO3 was founded in June of 1998, supported by a patented and unique technology for the sterilization of medical devices. This process uses ozone as the sterilizing agent and has been designed to allow the sterilization of heat and moisture-sensitive medical devices in healthcare settings.

The STERIZONE(R) Sterilization Process sterilizes large loads of medical devices quickly, cost-effectively, safely and in an eco-friendly way. This is in contrast to traditional gaseous low temperature sterilization methods which rely on toxic chemistry and require lengthy sterilization cycle times, or newer competitive oxidizing sterilizers which are costly to operate and limited in capability due to their load restrictions.

TSO3's first product, the STERIZONE(R) 125L Sterilizer has received clearance for commercialization from both Health Canada and the United States Food and Drug Administration (FDA), for sterilization of metal and heat sensitive instruments, as well as for devices with diffusion-restricted spaces, such as rigid endoscopes having a single stainless steel channel. In 2009, the Company received clearances from both the Canadian and American Regulatory Agencies for sterilization of additional complex medical devices, including packaged multi-channel flexible endoscopes.

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.

For further information: Marc Boisjoli, CFO, [phone], Ext. 228, [email protected]; Caroline Côté, Director, Corporate Communications and Investor Relations, [phone], Ext. 237, [email protected]; Source: TSO3 Inc.