Mr. R.M. Rumble reports

TSO3 AND GETINGE INFECTION CONTROL SIGN EXCLUSIVE GLOBAL DISTRIBUTION AGREEMENT

TSO3 Inc. has granted Getinge Infection Control AB, a global leader in infection-control solutions, exclusive global distributor rights to its FDA-cleared (food and drug administration), Sterizone VP4 sterilizer for $7.5-million (U.S.), plus performance minimums.

The performance requirements are multiyear and based on a formula for minimum unit shipments, with the minimum annual commitments reaching in excess of 10 per cent of the estimated annual global replacement market within the first five years. TSO3 estimates the annual replacement market worldwide totals more than 3,000 units or $450-million annually. Getinge will also receive continuing technical support from TSO3 as part of the agreement.

"This exclusive partnership with a top global provider of infection control devices and services represents a phenomenal endorsement of the unmatched ability our Sterizone sterilization system to sterilize the most challenging loads and complex devices used in health care today," said TSO3 president and chief executive officer, R.M. (Ric) Rumble. "It comes after Getinge has established a strong sales pipeline in the United States over the last several months, which resulted in the first shipments being recorded in the third quarter of 2015."

According to Joacim Lindoff, president and CEO of Getinge Infection Control: "The Sterizone VP4 sterilizer uniquely addresses an unmet global need for cost-effective, high-throughput sterilization of complex medical devices used in hospital environments. Our initial customer experience with the product line has been excellent. We're now laying plans for a global rollout, designed to leverage the global reach of Getinge's subsidiaries and distributors partnerships across six continents."

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 system automatically adjusts the quantity of injected sterilant based on the load composition, weight and temperature. With its large 75-pound load capacity and 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. The product recently received clearance in Canada to terminally sterilize multichannel flexible endoscopes, which are some of the most complex medical devices used in health care.

The additional claims allowed for the Sterizone VP4 sterilizer comes at a time when government health agencies are applying increasing pressure on health care providers to improve their vigilance with device reprocessing, especially as an aging patient population is leading to an increased use of colonoscopes and other medical devices used during minimally invasive surgery procedures. The growing concerns are based upon the increasing number of reported cases where use of the less robust disinfection process resulted in the transmission of infection, some of which involved antibiotic resistant microbes that led to the patient's injury or death.

More information about the Sterizone VP4 sterilizer is available on TSO3's website.

Desjardins Capital Markets acted as exclusive financial adviser to TSO3 in the context of the agreement.

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