12:04:36 EDT Mon 28 Sep 2020
DynaCERT Inc
Symbol DYA
Shares Issued 327,669,345
Close 2019-11-28 C$ 0.475
Recent Sedar Documents

DynaCERT closes $14M offering with Sprott

2019-11-29 08:37 ET - News Release

Mr. Jim Payne reports


DynaCERT Inc. has completed an arm's-length equity offering for aggregate gross proceeds of $14-million, which has been fully subscribed by an entity controlled by Eric Sprott. The company has issued an aggregate of 28 million units at a price of 50 cents per unit. Each unit consists of one common share and one-half of one common share purchase warrant. Each whole warrant entitles the holder thereof to purchase one share at an exercise price of 65 cents per share on or before Nov. 26, 2021, subject to 30-day notice of acceleration expiry at the option of the company at any time if, for any 10 consecutive trading days during the unexpired term of such warrants, the closing price of the company's shares on the TSX Venture Exchange is greater than 80 cents. In accordance with applicable securities laws, all of the shares and warrants issued under the offering are subject to a hold period equal to four month plus one day, which will expire on March 29, 2020.

The net proceeds of the offering will be used in part for capital expenditures to modernize and extend the assembly line of DynaCERT's HydraGEN technology in Toronto, as well as for expanding marketing and after-sales support within the transportation industry in North America, Mexico and Europe, the design, marketing and sales of HydraGEN technology aimed toward the global mining industry, both open pit and underground, for the furtherance of dynaCERT's strategy to monetize carbon credits and for general working capital purposes.

Mr. Sprott, through 2176423 Ontario Ltd., a corporation of which he is the controlling shareholder, has subscribed for 100 per cent of the offering, acquiring 28 million units for total consideration of $14-million. Prior to the offering, Mr. Sprott owned or controlled 1,893,500 shares of the company representing approximately 0.63 per cent of the then issued and outstanding shares. As a result of the offering, Mr. Sprott now beneficially owns or controls 29,893,500 shares and 14 million warrants of the company representing approximately 9.12 per cent of DynaCERT issued and outstanding shares on a non-diluted basis and approximately 12.85 per cent of the issued and outstanding shares of the company assuming the exercise of such warrants.

The units were acquired by Mr. Sprott for investment purposes. Mr. Sprott has a long-term view of the investment and may acquire additional securities of DynaCERT including on the open market or through private acquisitions or sell securities of DynaCERT including on the open market or through private dispositions in the future depending on market conditions, reformulation of plans and/or other factors that Mr. Sprott considers relevant from time to time. 2176423 Ontario's early warning report will appear on DynaCERT's profile on SEDAR and may also be obtained by calling Mr. Sprott's office 416-945-3294 (200 Bay St., Suite 2600, Royal Bank Plaza, South Tower, Toronto, Ont., M5J 2J1).

Mr. Sprott stated: "DynaCERT presents an unusual once-in-a-lifetime opportunity to participate at the commercial stage of what is a proven and compelling transformative technology to reduce carbon emissions in diesel engines, globally. I support the successful international mission of DynaCERT and I see this new investment as a means to participate in the important worldwide demand for carbon credits resulting from socially conscious users of mining equipment, trucking, transportation and power generation."

Jim Payne, president and chief executive officer of DynaCERT, stated: "Eric Sprott's endorsement of DynaCERT today is yet another one of the most significant turning points of our company's history. We are confident that our mutual alignment with personal and corporate objectives will continue to result in ongoing significant global achievements. With Eric's strong support, we are much further ahead, faster and better than we could have imagined, even just a few months ago. In the last few months, our team has solidified. We have brought together many enviable professionals, international business leaders, experts and expertise, loyal employees, and consultants from many countries and multiple disciplines. We, our board, our management, our clients, our dealers and distributors, and our shareholders, now welcome Mr. Sprott and look forward to our beneficial associations together for years to come."

About DynaCERT Inc.

DynaCERT manufactures and distributes carbon emission reduction technology for use with internal combustion engines.

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