Tropic International Inc. Announces Entry into Proposal with RBC Medical Innovations
Woodstock, Ontario--(Newsfile Corp. - February 27, 2017) - Tropic International Inc. (OTCBB: TRPO) (OTCQB: TRPO), a Nevada corporation in the business of developing and commercializing innovative technologies, is pleased to announce that on February 20, 2017, the company entered into a radio frequency treatment system (RFTS) proposal with RBC Medical Innovations of Lenexa, Kansas to develop Tropic's Notox technology.
Under the proposal, RBC will be responsible for completing the design and production of the two main RTFS components, a generator console and a disposable probe, to which Tropic obtained the intellectual property rights in 2016 as a result of its acquisition of Notox Bioscience Inc. That patented intellectual property was originally developed by Dr. Frank Papay, MD, owned by The Cleveland Clinic Foundation, and relates to the treatment of a neuromuscular defect. Tropic plans to turn the RTFS into the world's first credible and healthier non-toxic alternative to Botox.
The proposal calls for RBC to produce commercial-equivalent consoles and probes for use by Notox in human trials during the fourth quarter of 2017; test the consoles and probes for the purpose of providing technical data for FDA Section 510(k) and CE Mark submissions; and perform volume production of the components. In exchange for these services, Tropic has agreed to pay RBC according to a staged, fixed-fee approach, details of which are included in Tropic's recently-completed Form 8-K filing with the United States Securities and Exchange Commission. Importantly, RBC has agreed to convert a portion of the amount owing in the planning stage into shares of Tropic's common stock at a price to be negotiated between the parties in partial satisfaction of Tropic's payment obligations. That share issuance is expected to occur sometime in the next 60 days.
Tropic anticipates that fulfilling its obligations under the proposal will represent the final actions required to complete the RFTS production model, and that once complete, Tropic will be able to commence sales and marketing activities in the EU as well as advance the process of receiving regulatory approval for the RFTS in the United States and rest of the world.
"I am extremely pleased to report that Tropic has reached this major milestone," commented Zoran Konevic, Tropic's Chief Executive Officer. "The agreement with RBC is significant not only for Tropic and its shareholders, but also for the Cleveland Clinic and the public in general. In today's world, bringing any technological solutions to market that are healthier, better and cheaper for consumers is a big deal, as people are seeking to make the best possible choices in their lives on every level.
Tropic's path to success in the global aesthetic and pain management market is now closer than ever to being realized and we look forward to working with our partners to produce timely results for each of our stakeholders."
In addition, Tropic is pleased to announce that on February 22, 2017, the holders of a majority of the issued and outstanding exchangeable preferred shares of 1894632 Ontario Inc., the company's subsidiary, approved a change to the rights, privileges, restrictions and conditions attached to those shares in order to extend the date on which all restrictions will automatically expire from June 30, 2017 to December 31, 2018. This effectively means that those shares will be locked up for an additional 18 months, subject to certain limited exceptions, thereby giving Tropic the necessary time to implement its RFTS strategy.
This news release does not constitute an offer to sell or a solicitation of an offer to buy securities in the United States. The securities referenced herein have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), or any state securities laws and may not be offered or sold in the United States except in compliance with one or more exemptions from the registration requirements of the U.S. Securities Act and applicable state securities laws.
About Tropic International Inc.
Tropic International Inc. (OTCBB: TRPO) (OTCQB: TRPO) is in the business of developing and commercializing innovative technologies through its wholly-owned Nevada subsidiary Notox Bioscience Inc. and its majority-owned Ontario, Canada subsidiary, Tropic Spa Inc. The company's goals are to market a credible, non-toxic alternative to Botox through the former and a unique, affordable home mist tanning system through the latter.
About RBC Medical Innovations
For over 20 years, RBC Medical Innovations has provided design and manufacturing services of electromechanical medical products. Its clients include 7 of the top 20 medical device companies in the world, and dozens of small to mid-size firms. RBC delivers value through its in-house expertise, network of trusted partners and suppliers, and a constant focus on collaboration and communication.
For more information, please contact:
John Marmora - President
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