Dynamic Fuel Systems Inc.

September 03, 2010 16:59 ET

Dynamic Announces Sale of Building

PICKERING, ONTARIO--(Marketwire - Sept. 3, 2010) - Dynamic Fuel Systems Inc. (TSX VENTURE:DYA) ("Dynamic" or the "Corporation") announces the sale of its building located on 890 Brock Rd South, Pickering Ontario L1W 1Z9, the building was sold for two million, eight hundred and seventy five thousand ($2,875,000.00). The building is a single user older industrial building that was sold in a down market, to NCFJS Holdings Incorporated, the money will be used to consolidate company debts. This sale has enabled Dynamic to discharge the servicing of $2,700,000.00 of debt. Additionally, significant savings are expected to be realized from reductions of taxes, insurance, maintenance and utility costs. The annual net savings to the Corporation resulting from the sale of the building are expected to be approximately $400,000.00.

The corporation will be located at 1288 Ritson Road Nth. Suite 385, Oshawa, Ontario, Canada.

As a reorganization effort over the past six months, the board has continued its efforts and commitment to reducing the corporate burn rate from $3,000,000 per year to less than $500,000 per year. The reduction of our internal structure, inventory and fixed building costs is part of the Corporation's ongoing Corporate Strategy and Succession plan. The Corporation will continue to consolidate and reduce costs wherever possible while strengthening our industry partners and product offerings.

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.

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.

Contact Information

  • Dynamic Fuel Systems Inc.
    Mr. John Hultink
    Chairman of the Board