SOURCE: Dynamic Energy Alliance Corporation
MEMPHIS, TN--(Marketwire - Oct 2, 2012) - In support of its plan to build its first Pyrol Black Energy Campus near Dallas, Dynamic Energy Alliance Corporation (OTCQB: DEAC), today announced that that its wholly owned development subsidiary, Dynamic Energy Development Corp. (DEDC), has entered into an option agreement for the right of first refusal and option to purchase a 10-acre site containing substantial tire feedstock and an existing 2,000-ton per year tire recycling business, located in Ennis, Texas.
The property, which contains structures aggregating 32,000 sq. ft., is permitted by the Texas Commission on Environmental Quality as a scrap tire collection and processing operation. The location is in close proximity to strategic infrastructure and logistics resources that would enhance the Company's ability to collect and distribute raw and finished materials.
The site was originally optioned by DEDC in March 2012. In June 2012, DEDC assigned its option rights to IWSI PS Plan, an entity affiliated with DEAC's Chairman Charles R. Cronin, Jr. IWSI subsequently exercised the option and acquired the facility on June 4, 2012.
Mr. Cronin stated: "We've arrived at a fair and equitable way to safeguard this important property for the Company's use as we pursue our goal of developing a state-of-the-art energy campus. DEAC's energy campus will combine proven tire pyrolysis processes and other proprietary technologies to optimize outputs of high value organic compounds, synthetic oils, and carbon black; thus executing our vision to convert abandoned tires into recoverable products."
DEAC's purchase option extends through June 2014, with one renewal. The option provides for an exercise price of $1,032,500 (the original price paid by IWSI), plus other considerations that include facility usage fees of $10,000 per month (which accrues until a closing), and quarterly option payments equal to $15,000 per quarter (to be credited against the purchase price if option is exercised) to keep the option current, along with other consideration adjustments to be determined at closing.
Additional information is provided in the Company's current report on Form 8-K with Securities and Exchange Commission on October 2, 2012. The description of the terms of the option is qualified in its entirety by reference to the Option Agreement, which is attached as an Exhibit to the Company's Form 8-K filing.
About Dynamic Energy Alliance Corporation
Dynamic Energy Alliance Corporation (DEAC), www.dynamicenergyalliance.com, is a development stage energy and recycling company focused on identifying, combining and enhancing existing technologies with proprietary recoverable production and finishing processes to produce synthetic oil, carbon black, gas, and carbon steel from waste feedstock. This process is expected to be accomplished with limited residual waste product and significant reductions in greenhouse gases compared to traditional processing. To maximize this opportunity, the Company has developed a scalable, commercial development strategy to build "Energy Campuses" with low operational costs and long-term, recurring revenues.
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This press release contains forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. By their nature, forward-looking statements and forecasts involve risks and uncertainties because they relate to events and depend on circumstances that will occur in the near future. Forward-looking statements speak only as of the date they are made, are based on various underlying assumptions and current expectations about the future. We caution readers that any forward-looking statements are not guarantees of future performance and that actual results could differ materially from those contained or implied in the forward-looking statements. Such forward-looking statements include, but are not limited to, statements about the transactions described herein, future financial and operating results, the combined company's plans, objectives, expectations and intentions and other statements that are not historical facts. In some cases, you may identify forward-looking statements by words such as "may," "should," "plan," "intend," "potential," "continue," "believe," "expect," "predict," "anticipate" and "estimate," the negative of these words or other comparable words. These statements are only predictions. One should not place undue reliance on these forward-looking statements. The forward-looking statements are qualified by their terms and/or important factors, many of which are outside the Company's control, involve a number of risks, uncertainties and other factors that could cause actual results and events to differ materially from the statements made. The forward-looking statements are based on the Management's beliefs, assumptions and expectations about the Company's future performance and the future performance of its subsidiaries, taking into account information currently available to the Company. These beliefs, assumptions and expectations can change as a result of many possible events or factors not all of which are known to the Company. The Company will update this forward-looking information only to the extent required under applicable securities laws. Neither the Company nor any other person assumes responsibility for the accuracy or completeness of these forward-looking statements.
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