Micromem Technologies Inc. Provides an Update on Executed Manufacturing and Supply Agreements and Ongoing Business Initiatives
TORONTO, NEW YORK, N.Y.—December 15, 2009
— Micromem Technologies Inc.,
(Micromem, the “Company”) (OTC
BB: MMTIF, CNSX: MRM) and its wholly-owned subsidiary, Micromem Applied Sensor
Technologies, Inc. (MAST) (www.mastinc.com), provide the following
update on executed manufacturing and supply agreements and other business
initiatives, including Unotron, Life Medical Technologies, Inc., and BAE
Systems:
1. MAST signed a manufacturing and supply
agreement with Unotron Incorporated (“Unotron”) in April 2009 at which point it
secured an initial purchase order of up to five million units to be delivered
over five years with a potential contract value of US$77 million.
Since
April 2009, the Company has worked closely with Unotron and its engineers to
develop a fully functional washable keyboard that integrates Micromem’s sensor
technology. The Company’s
contracted engineer met Unotron’s design team in China in July 2009. Micromem has been working closely with
it subcontractor, Soligie Inc., since then to finalize the required printed
circuitry for insertion into Unotron’s washable keyboard.
MAST has
completed its first shipment of up to 100 test units in December 2009. Unotron will complete product testing
and awaits all required third party certifications (FCC, CE, ULC etc.) and,
once these are received, Unotron will begin production and will activate the
initial purchase order with MAST. Whereas the Company originally projected that
it would report revenues under this purchase order in 2009, it now anticipates
initial revenues by the end of the first quarter of calendar 2010. It is
important to note the delay in product rollout has been in large part due to
production and shipping logistics.
Micromem
has advanced Unotron US$200,000 to support the joint development between Unotron
and the Company. The funds are advanced as a debenture secured by a first
charge on the assets of Unotron USA, bearing interest at 10 percent per annum
payable quarterly and maturing on September 30, 2010.
2. LifeMed Technologies Inc. (“LifeMed”) has
recently finalized the acquisition of all the manufacturing assets and
intellectual property relating to its Breast Aware™ breast tumor detection
technology. LifeMed and MAST are gearing up to incorporate Micromem’s magnetic
sensor technology into the current Breast Aware™ product. Carol Fitzgerald,
president of LifeMed and an advisor to MAST, is overseeing the start-up of
production activity, which is scheduled for January 2010. Delays in the product
launch are in large part due to the delay in LifeMed finalizing its acquisition
of the Breast Aware technology.
Micromem
previously announced an initial LifeMed purchase order for US$30 million with
initial revenues anticipated in 2009.
Currently, it anticipates that the initial revenues under this purchase
order will be realized in the first quarter of calendar 2010. Recently MAST trademarked its new early
breast detection line of products as BreastAwareTM. The Company is
working closely with LifeMed to leverage previous FDA approvals, and it expects
to be in a position to launch its first products in Q110.
3. As previously announced, the Company has
also been developing its magnetic and sensor technology under an agreement with
BAE Systems Microelectronics Centre (BAE Systems) in Nashua, N.H., over the
past 18 months, with the objective of bringing Micromem’s design to maturity
and to begin production.
Micromem’s
magnetic memory and sensors have now been fully tested and proven to be
functional by BAE Systems, which recently issued an initial draft of a
memorandum of understanding to Micromem for the next phase of business
development and, ultimately, monetization of the Company’s technology.
Micromem
anticipates that an ongoing working relationship with BAE Systems and its
customers will be finalized during the first half of calendar 2010, resulting
in licensing agreements for the Company.
4. Since June 2009, MAST has continued its
development work with Norwegian EM Technology on NEMT’S survey tool for
exploration activity in the North Sea.
NEMT is developing a unique hydrocarbon and mineral exploration survey
system. In extensive field-testing
of MAST’s highly sensitive, low frequency device, actual performance is
exceeding initial expectations. MAST anticipates the release of formal test
results shortly. NEMT expects to begin exploration of its licensed area in the North
Sea by spring 2010.
Joseph Fuda,
president and CEO of Micromem, states, “Looking back over the past 12 months,
the Micromem team has made significant strides bringing its technology from
research and development into commercialization. The Company has brought a new
and emerging technology to market on a limited budget and has managed to
succeed where many other companies have failed.
“It has been a
very productive last quarter for the Company, and the development work the team
has managed to accomplish is extremely encouraging. We anticipate the first
quarter of 2010 to be yet another milestone in the Company’s history as we
begin to generate revenue and move into full-blown production. I am convinced
that the future of Micromem -- given the business pipeline we have put in place
for 2010 -- will be a very exciting one for both the management and
shareholders of our company.”
Other updates
include:
- Silicon Turnkey Solutions, Inc., (STS) a
solution provider in the area of specialty assembly, electrical test,
qualification, reliability, and product screening, has completed all life cycle
testing of MAST’s product and will now publish a completed product data sheet.
MAST’s basic hall sensor is now fully developed and productized. STS completed
all high and low temperature and long-term failure analysis, and the product
has passed all tests with zero failures.
- MAST has entered into a development
agreement with NanoOpto, a precision optics nanofabrication company based in
Somerset, N.J., that is developing a concentrator for the Company’s hall
sensor. This is expected to
provide between 100 and 200 times improvement in sensitivity to better than 0.1
nT/root Hz. The project is
scheduled for completion in the first quarter of calendar 2010.
- MAST has worked closely with Nth Degree
of Arizona in completing a printable hall sensor via its unique manufacturing
process. The process for manufacturing highly dense arrays of the magnetic
sensors for the Department of Defense and medical usage is now fully defined.
- Third party testing of MAST’s oil sensor
has proven the device to be both robust and highly accurate in the reading of
the time and temperature degradation of motor oil. MAST has entered into an agreement with an end-user to
develop a form factor for the oil sensor that will be used in the oil pan plug.
About
Micromem and MASTInc
MASTInc is a wholly owned U.S.-based subsidiary
of Micromem Technologies Inc., a publicly traded (OTC BB: MMTIF, CNSX: MRM)
company. MASTInc responsibly analyzes the specific industry sectors
to create intelligent game-changing applications
that address unmet market needs. By leveraging its expertise and experience
with sophisticated magnetic sensor applications, MASTInc successfully powers
the development and implementation of innovative solutions for
healthcare/biomedical, natural resource exploration, government, information
technology, manufacturing, and other industries. Visit www.micromeminc.com www.mastinc.com.
Safe Harbor Statement
This press release
contains forward-looking statements. Such forward-looking statements are
subject to a number of risks, assumptions and uncertainties that could cause
the Company’s actual results to differ materially from those projected in such
forward-looking statements. In particular, factors that could cause actual
results to differ materially from those in forward looking statements include:
our inability to obtain additional financing on acceptable terms; risk that our
products and services will not gain widespread market acceptance; continued
consumer adoption of digital technology; inability to compete with others who
provide comparable products; the failure of our technology; the infringement of
our technology with proprietary rights of third parties; inability to respond
to consumer and technological demands; inability to replace significant
customers; seasonal nature of our business; and other risks detailed in our
filings with the Securities and Exchange Commission. Forward-looking statements
speak only as of the date made and are not guarantees of future performance. We
undertake no obligation to publicly update or revise any forward-looking
statements. When used in this document, the words “believe,” “expect,”
“anticipate,” “estimate,” “project,” “plan,” “should,” “intend,” “may,” “will,”
“would,” “potential,” and similar expressions may be used to identify
forward-looking statements.
The CNSX or any other
securities regulatory authority has not reviewed and does not accept
responsibility for the adequacy or accuracy of this press release that has been
prepared by management.
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Listing: NASD OTC-Bulletin Board - Symbol: MMTIF
CNSX - Symbol: MRM
Shares
issued: 89,506,279
SEC File
No: 0-26005
Investor Contact:
Jason Baun
Chief Information
Officer
Micromem Technologies
Inc.
416-364-2023
Media
Contact:
CPR for MASTInc
Dana Taormina
201-641-1911 x53
dtaormina@cpronline.com
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