Micromem Technologies Inc. completed a non‑brokered private placement of common share units on December 31 2025. Each unit was priced at CAD 0.05 and comprised one common share and one warrant exercisable at CAD 0.06 per share for one year. The placement could raise up to CAD 330,000, with a 50 % discretionary increase available if demand warrants it. All securities are subject to a four‑month hold period, and the proceeds are earmarked for working capital and debt settlement.
In addition to the placement, Micromem granted 5,900,000 options under its 2020 Stock Option Plan. The options have an exercise price of CAD 0.05 per share, vest immediately, and remain exercisable for five years, expiring on December 31 2030. The grant replaces options that expired in November 2025 and serves to align employee incentives with the company’s long‑term objectives.
Financially, Micromem reported no revenue and high debt levels as of December 31 2025, with consistent net losses in prior fiscal years. Earlier in 2025 the company raised CAD 498,652 in October and CAD 535,775 in June through similar private placements, underscoring a recurring need for capital. The low share price and low exercise price of the new securities reflect the company’s urgent liquidity requirements and the limited market appetite for its equity.
The financing strategy indicates that Micromem is prioritizing cash preservation over debt expansion. By issuing equity rather than additional debt, the company avoids further leverage in a period of financial distress, but the dilution effect may weigh on existing shareholders. The option grant also signals management’s intent to retain talent and reward performance, even as the company navigates a challenging operating environment.
Overall, the private placement and option grant highlight Microme’s ongoing liquidity challenges and its reliance on equity financing to sustain operations. The move may provide short‑term relief but also raises questions about the company’s ability to generate revenue and achieve profitability in the near term.
The event underscores the importance of monitoring Micromem’s future financial disclosures and any subsequent strategic initiatives that could alter its capital structure or operational trajectory.
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