TORONTO, ONTARIO--(Marketwired - Sept. 25, 2013) - dynaCERT Inc. (TSX VENTURE:DYA) ("dynaCERT" or the "Corporation") provides an update on various previous news releases as part of its Continuous Disclosure Policy.
On June 28, 2012, the Corporation announced the signing of a Master Distributor Memorandum of Understanding ("Range Gen MOU") with Range Gen LLC ("Range Gen") of Sterling Heights, Michigan, together with the receipt of a purchase order for 500 units. An initial delivery under this purchase order was made in July 2012, at which time dynaCERT delivered a total of 12 HydraGen™ units to Range Gen in accordance with the purchase order. While such units were in the course of delivery, 4 units were diverted for delivery to another customer. Shortly thereafter a dispute occurred between the principals of Range Gen and various third parties, which resulted in legal action being commenced in August 2012 among Range Gen and such third parties whereby Range Gen sought to defend its business interests and Intellectual Property. dynaCERT was not party or named in any legal action but was advised that until the matter could be resolved there should be no changes or public disclosure made in order to reduce the potential risk of the Corporation being brought into the legal action involving Range Gen. Accordingly, no further deliveries were made under the purchase order and the purchase order was subsequently cancelled. Communications have continued between both Range Gen and dynaCERT . Since June 2012 and on September 23, 2013 dynaCERT INC and Range Gen LLC signed an Agency/Consulting Agreement, pursuant to which Range Gen has been appointed as one of dynaCERT's non-exclusive agents to represent the HydraGen™ technology to its customer base. The foregoing agreement is for a term of three (3) years (renewable for an additional three (3) years thereafter) and appoints Range Gen LLC as a non-exclusive selling agent of dynaCERT, which enables Range Gen to represent dynaCERT's products, purchase wholesale products, obtain volume discounts, etc. The Agency/Consulting Agreement is non-exclusive, however Range Gen may identify named customers from time to time, in respect of which it shall have exclusive negotiating rights for a period of six months following acceptance by dynaCERT.
On June 28, 2012, the Corporation also announced that negotiations pertaining to a non-exclusive Master Distributor Agreement with Contractor's Tank Inc. of California had culminated in the signing of a Memorandum of Understanding ("Contractor's Tank MOU"). The Contractor's Tank MOU contemplated a series of steps, none of which transpired. The Contractor's Tank MOU has therefore expired and the Corporation has no intention of entering into any future dealings on this matter.
On January 25, 2013, dynaCERT announced that it had received an order for delivery of 10 HydraGen™ units to East West Fuel Strategies ("EWFS") in connection with EWFS's proposed sale of such units in Ontario, Canada and Southeast Asia. An initial delivery of five units was made shortly after receipt of that order; however no additional units have been delivered. Shortly after delivery, EWFS installed one of the units on a gravel truck in Brampton, Ontario and determined that the results were inconclusive. EWFS communicated these findings to the Corporation and in August 2013, EWFS returned the five previously delivered units to dynaCERT and the Corporation has given a refund of total monies paid for the previously delivered units. Moving forward, EWFS has expressed a desire to continue discussions with a view towards renewing its relationship with the Corporation, however no agreements are currently in place, nor has the Corporation received an order for delivery of any further units.
About dynaCERT Inc.
dynaCERT Inc. manufactures, distributes and installs Carbon Emission Reduction Technology for use with internal combustion engines. Our patent-pending technology creates hydrogen and oxygen on-demand through electrolysis and supplies these additives through the air intake to enhance combustion, resulting in lower carbon emissions and greater fuel efficiency. Our technology is currently in use with on-road applications. More information can be found at www.dynacert.com.
Forward Looking Information
This release includes forward looking statements, which are based on certain assumptions and reflects management's current expectations. These forward looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations. Some of these factors include: uncertainty as to whether our strategies and business plans will yield the expected benefits; availability and cost of capital; the ability to identify and develop and achieve commercial success for new products and technologies; the level of expenditures necessary to maintain and improve the quality of products and services; changes in technology and changes in laws and regulations; the uncertainty of the emerging hydrogen economy; including the hydrogen economy moving at a pace not anticipated; our ability to secure and maintain strategic relationships and distribution agreements.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of the release.