Micromem Technologies Inc. (MMTIF)

[MasterSalix]

Well, to be fair and not taking anything away from the deal – it is BIG news – it states “Annual revenue to Micromem is expected to grow to over $18M USD over the next ten years as the market penetration matures” – so that means that they expect over $18M in revs at year 10, before that it would be less – how much less is hard to say – So, this is probably a deal that will generate less than $180M. (but, theoretically, it could generate even more)

However, the important element here is that it is a game-changer for MMTIF; they will finally have some revenue income coming in and won’t have to rely on issuing shares to stay afloat. Plus, royalties are awesome, you let someone else do all the work and have the workforce and overhead and you just get issued checks for licensing the technology. Further, this is a “small” deal compared with their oil pursuits and to have this one in the bag for a long-term contract is BIG.

IMHO, with the revs from this deal, from what I can tell – even if you value it at just $100M over 10 years (probably a discount) – MMTIF should be valued somewhere in the $1.25 - $1.50 range – and the deal with Saudi Aramco is probably next and should be much larger – AND they have several other deals according to the filings in various stages - so your $3.00 - $5.00 target is not pie-in-the-sky at all. I am very comfortable with my position here and it really appears MMTIF is on the right track and due for a major push North.