Micromem Technologies Inc. Provides an Update on Executed Manufacturing and Supply Agreements and Ongoing Business Initiatives
December 15 2009 - 2:10PM
Business Wire
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.
Listing: NASD OTC-Bulletin Board - Symbol:
MMTIF
CNSX - Symbol: MRM
Shares issued: 89,506,279
SEC File No: 0-26005
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