Ticker: TSX - TOS
Shares Outstanding: 65,884,682
QUEBEC CITY, Aug. 2, 2012 /CNW Telbec/ - TSO3 Inc. (TSX: TOS) ("TSO3" or the "Corporation") an innovator in sterilization technology for medical devices in healthcare settings, today announced that the Corporation has terminated the agreement with its channel partner the 3M Company for the exclusive supply, distribution, license and service of the new STERIZONE 125L+ Sterilizer.
The agreement dated December 2009, as amended in May 2011, provided either party with the right to terminate the agreement in the event that the US regulatory clearance had not been obtained within 24 months of the original filing date. TSO3 decided to exercise this right and provided a letter of termination to its channel partner on June 15 2012. Post termination, both parties have been in face-to-face meetings and have had discussions in order to reach a new agreement. As of today, the parties have not been able to reach agreeable terms and have put an end to their negotiations. TSO3 has also had non-exclusive discussions in parallel to seek the desired partnership with another party.
"We have taken the decision to terminate the agreement with careful consideration of its impact on the Corporation and strongly feel that it was the appropriate decision", stated R.M (Ric) Rumble, CEO of TSO3. "We are seeking to enter into discussions to reach a favorable channel partnership in order to create value for the shareholders until and after the US regulatory clearance is obtained. Meanwhile, we will keep supporting the former channel partner as per the conditions of the terminated agreement", said Mr. Rumble. "The termination of the commercial agreement with the 3M Company does not reduce in any way our efforts to secure all regulatory approvals necessary to market the products in the United States".
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 Corporation'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.
For further information:
Source: TSO3 Inc.
Director - Investor and Business Relations
(418) 651-0003, Ext. 237