TORONTO--(BUSINESS WIRE)--dynaCERT Inc. (TSX VENTURE:DYA) (OTCQX:DYFSF) (FRA:DMJ) ("dynaCERT" or the "Company") announces that its strategic alliance with Mosolf SE & Co. AG ("Mosolf"), first announced by the Company in a news release dated October 16, 2019 (and commented upon in its subsequent Management Discussion & Analysis in 2020 Q1 and Q2), has been terminated. Though discussions pertaining to this strategic alliance continued throughout 2021, the Company has recently recognized the termination of the strategic alliance from Mosolf. The Company's strategic alliance with Mosolf initially included a purchase order for 1,000 HydraGEN™ units, a dealership agreement for Germany and an understanding to negotiate towards a joint venture for the passenger car after-market in Europe. Though the Company enjoyed a positive relationship with the Mosolf group and its principals, the objectives of the initial arrangement have not materialized, as only 48 units out of the 1,000 units under the foregoing purchase order were delivered. As with several other orders received by the Company in late 2019 and early 2020, the COVID-19 pandemic had a significant impact on this relationship, both in terms of access to the potential markets and clients of Mosolf, and in terms of the Company's limitations on production (and availability of inputs) throughout the lockdowns imposed by the Government of Ontario throughout 2020 and into 2021. At the same time, the materiality of this dealership declined in 2020 because the overall number of dealers increased significantly (with dynaCERT now having over 45 dealers globally, seven (7) of which are located and operate in Europe), and because of the increasing relative importance of the Company’s relationship with its other dealers and agents that operate in multiple centres globally. These European dealership arrangements are entered into between the Company's European subsidiary, dynaCERT GmbH Inc. (which operates out of Germany, with a total of five (5) dedicated employees) and cover various European countries, including Germany, Austria, Netherlands and Benelux, Italy, Portugal, Latvia and the Baltics, the UK and Ireland.
The Company notes that the disclosures in this press release are provided to comply with a request by Staff of the Ontario Securities Commission following a continuous disclosure review.
About dynaCERT Inc.
dynaCERT Inc. manufactures and distributes Carbon Emission Reduction Technology for use with internal combustion engines. As part of the growing global hydrogen economy, our patented technology creates hydrogen and oxygen on-demand through a unique electrolysis system and supplies these gases through the air intake to enhance combustion, resulting in lower carbon emissions and greater fuel efficiency. Our technology is designed for use with many types and sizes of diesel engines used in on-road vehicles, refrigerated trailers, off-road construction, power generation, mining and forestry equipment, marine vessels and railroad locomotives. Website: www.dynaCERT.com.
Except for statements of historical fact, this news release contains certain "forward-looking information" within the meaning of applicable securities law. Forward-looking information is frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate" and other similar words, or statements that certain events or conditions "may" or "will" occur. Although we believe that the expectations reflected in the forward-looking information are reasonable, there can be no assurance that such expectations will prove to be correct. We cannot guarantee future results, performance of achievements. Consequently, there is no representation that the actual results achieved will be the same, in whole or in part, as those set out in the forward-looking information.
Forward-looking information is based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those anticipated in the forward-looking information. Some of the risks and other factors that could cause the results to differ materially from those expressed in the forward-looking information include, but are not limited to: 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; and the other risk factors disclosed under our profile on SEDAR at www.sedar.com. Readers are cautioned that this list of risk factors should not be construed as exhaustive.
The forward-looking information contained in this news release is expressly qualified by this cautionary statement. We undertake no duty to update any of the forward-looking information to conform such information to actual results or to changes in our expectations except as otherwise required by applicable securities legislation. Readers are cautioned not to place undue reliance on forward-looking information.
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On Behalf of the Board
Murray James Payne, CEO