Dynamic Fuel Systems Inc.

May 07, 2009 11:40 ET

Dynamic Announces Closing of Private Placement

PICKERING, ONTARIO--(Marketwire - May 7, 2009) - Dynamic Fuel Systems Inc. (TSX VENTURE:DYA) (the "Corporation") announced today that it has completed a private placement of 5,400,000 units (the "Units") at a price of $0.10 per Unit for aggregate gross proceeds of $540,000. Each Unit consists of one common share in the capital of the Corporation (a "Common Share") and one common share purchase warrant (a "Warrant"). Each Warrant is exercisable into one Common Share at a price of $1.50 for a period of two years from the date of issuance thereof. This offering was completed on a non-brokered basis and no finders' fees were paid. An aggregate of 5,000,000 units were acquired by Mr. John Hultink of Brampton, Ontario, who, by virtue of this subscription, has become an Insider of the Corporation. Accordingly, Mr. Hultink's subscription has been closed in trust, pending satisfactory review and approval by the TSX Venture Exchange (the "Exchange"). After giving effect to this subscription, Mr. Hultink will be the holder of an aggregate of 14,000,000 common shares of the Corporation (approximately 12.8% of the issued and outstanding Common Shares), together with 6,500,000 common share purchase warrants of the Corporation. Conditional approval in respect of the foregoing private placement has been granted by the Exchange and materials have been submitted to the Exchange requesting final approval. In accordance with applicable securities laws, the Common Shares and Warrants issued under the private placement are subject to four-month hold periods, which will expire on September 7, 2009. The proceeds from this offering will be used for research and development, sales and marketing and for general working capital purposes.

About Dynamic Fuel Systems Inc.

Dynamic Fuel Systems Inc. is a Pickering, Ontario based energy sector company engaged in the manufacture, distribution, installation and marketing of a transportable hydrogen generator retrofit targeted for use in the heavy tractor trailer industry. Its flagship product, the Jetstar™, is a patent-pending aftermarket retrofit solution that provides combustion enhancement by mixing hydrogen and oxygen into a vehicle's intake air to provide the engine with a more complete burn of the fuel in its internal combustion engine. Its business was founded in 2001 and more information about its products can be viewed at its website at www.dynamicfuel.com

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: general global economic conditions; general industry and market conditions and growth rates; uncertainty as to whether our strategies and business plans will yield the expected benefits; increasing competition; 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; changes in laws and regulations, includes codes and standards, intellectual property rights, and tax matters; 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. The Corporation disclaims any intention or obligation to update or revise any forward looking statements, whether as a result of new information, future events or otherwise.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information