TSO3 SETTLES DISPUTE WITH 3M COMPANY
QUEBEC CITY, July 2, 2013 – TSO3 Inc. (“TSO3”) today announced that the Company has settled the ongoing dispute with the 3M Company (“3M”) through the mediation process.
On August 2, 2012, TSO3 announced that the Company had terminated its Agreement with its former channel partner 3M, for the exclusive supply, distribution, license and service of the new STERIZONE® 125L+ Sterilizer branded as the 3M™ Optreoz™ 125-Z. The Agreement, dated December 2009 and amended in May 2011, provided conditions for either party to terminate the agreement. TSO3 exercised this right and provided a letter of termination to 3M on June 15, 2012. 3M had disputed TSO3’s right to terminate the agreement.
In respect of the terms outlined in the settlement, limited details are being released. An amount of $2 million inclusive of the repurchase of inventory as well as settlement fees will be paid by TSO3 to 3M.
“We are satisfied with the terms of the settlement and that the dispute has been settled”, stated R.M. (Ric) Rumble, CEO of TSO3.
Current Installed Base
The current installed base of TSO3 STERIZONE® 125L+ Sterilizers (3M™ Optreoz™ 125-Z) will be supported by TSO3 until a new agreement is in place with a distribution partner. “We have maintained a close connection with the Canadian base of users and we have everything in place to maintain existing customers and provide additional support”, concluded R.M. (Ric) 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.
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