Strategic Update to Shareholders: March 17 2016

The Board of Directors and Management of the L.O.M. companies (“the L.O.M. Management”), together with Deloitte Corporate Finance Inc. (“Deloitte”), have contacted over sixty pharmaceutical and medical device companies. During this process our team has met with companies around the world.  The objective of this process has been to identify a buyer of the L.O.M. business or intellectual property, being the L.O.M. safety syringes and related appliances which include the Modular PowerPAK PLUS interchangeable needle system and Retractable blood collection devices (“the L.O.M. IP”). As a result of this thorough process L.O.M. Management believe the initial strategy of immediately selling the IP to a single buyer will not maximize shareholder value at this time.

As a result, L.O.M. Management and Deloitte have developed a strategy which segmented the world into twelve individual market territories (“the Territories”) and our team is negotiating with territorial partners for the rights to exclusively market, distribute and, if appropriate, manufacture the L.O.M. IP for each specific Territory.

LOMMI- Territory Map- V2

L.O.M. has established manufacturing capacity for the territorial partners who can either manufacture in the Territory or source the L.O.M. IP through L.O.M.’s Original Equipment Manufacturer.  L.O.M. Management and Deloitte believe that by segmenting the world into territories, (see chart below), L.O.M. Management will maximize the global value for the L.O.M. IP.

Ultimately, for shareholders to realize the maximum value, L.O.M. Management will consider the outright sale of the business, sale of the IP, monetization of royalty streams or retaining royalty income streams.

Sincerely,

On Behalf of the Board
Herbert R. Towning
President & CEO