Mr. Murray Payne reports
DYNACERT ANNOUNCES STRATEGIC INVESTMENT BY MOSOLF IN EUROPE
Mosolf SE & Co. AG, a significant European dealer of DynaCERT Inc. (see DynaCERT's press release dated Oct. 16, 2019), is making a strong and strategic financial commitment to the company with the expansion of dealer operations across Germany and neighbouring European countries. As well, Dr. Joerg Mosolf, president and chief executive officer of Mosolf, has made an additional personal equity investment of $1-million.
Dr. Mosolf advises that Mosolf has already hired 23 new employees dedicated 100 per cent full-time to the marketing, sales and installations of DynaCERT's HydraGEN technology in Germany, France, Benelux and Poland. As well, Mosolf has dedicated a showroom in Germany to showcase professionally and exclusively DynaCERT's HydraGEN technology. Dr. Mosolf is personally dedicating his individual time on a daily basis to introducing DynaCERT's HydraGEN technology to chief executives of users and potential users in Europe as well as important government officials and OEMs (original equipment manufacturers) in Germany.
In addition and more specifically, Mosolf, as a dealer of DynaCERT, has indicated formally to the company that it is currently setting up the following:
- In Germany: 12 showrooms, starting in January, 2020, for showcasing DynaCERT's HydraGEN technology in various cities across Germany;
- In France: two showrooms, starting in January, 2020, for showcasing DynaCERT's HydraGEN technology and expand more showrooms across cities in France within the next 12 months;
- In Belgium: one showroom, starting in January, 2020, for showcasing DynaCERT's HydraGEN technology in various cities across Belgium;
- In Holland: one showroom, starting in January, 2020, for showcasing DynaCERT's HydraGEN technology in various cities across Holland;
- In Czech Republic: one showroom to be set up in Prague in the first quarter of 2020;
In Poland: one showroom to be set up in the second quarter of 2020.
On the Rhine River, Mosolf is initiating marine applications by installing DynaCERT's HydraGEN technology on one of the RoRo inland vessels, MS Terra, owned by the Dutch shipping company F. Elbert BV, in turn owned by shipper Frans Elbert. The vessel has a loading capacity of 175 commercial vehicles of the Sprinter class or 250 cars. Mosolf's compound at the Rhine port in Dusseldorf functions as a trimodal transport hub (road, rail, water) for the transport of vehicles between the Rhine-Ruhr metropolitan area and the North Range seaports.
Mosolf is also installing DynaCERT's HydraGEN technology on the largest shipping line in Europe, the Grimaldi Group, owned by the Grimaldi family. The HydraGEN units are expected to be installed on short sea ships navigating the Mediterranean Sea and the North Sea, which are larger than those used on the Rhine River. Pursuant to the Paris Accord, the European Union is advancing legislation to govern carbon emissions by ships on navigable seas surrounding the continent.
Dr. Mosolf is already in negotiations with the German military, the BUndeswehr, to install DynaCERT's HydraGEN technology, with the support of Smietje Moller, a member of the German Parliament.
Dr. Mosolf has commenced negotiations with the Minister of Transport of Germany to further support the widespread introduction of DynaCERT's HydraGEN technology on a national German level and also on a broader European level. As a follow-up to these government meetings, more meetings are also already set up this month with the Minister of the Economy.
Based in Kirchheim/Teck, Germany, Mosolf is one of the leading logistics system service providers to the automotive industry in Europe. Mosolf has been growing exponentially in the automobile industry since 1955. The wide spectrum of services provided by Mosolf covers the complete value-added chain for commercial and construction vehicles and automobile logistics, ranging from the end of the production line to end-of-life vehicle recycling. With a staff of over 2,800, these services are provided using a broad network of 38 technical centres and a multimodal fleet that combines different resources for road, rail and river transportation methods with numerous points of sale and service throughout Europe.
In addition to Mosolf's expansion of dealer operations, Dr. Mosolf, through a wholly owned entity, is the sole subscriber under an arm's-length equity offering for aggregate gross proceeds of $1-million. Combined with his subscription to a previous offering, Dr. Mosolf now owns four million shares or approximately 1.2 per cent of the 336,728,260 issued and outstanding shares of company, in addition to two million warrants of the company, which, if exercised, would bring his ownership to approximately 1.8 per cent.
Under this offering, the company issued an aggregate of two million units at a price of 50 cents per unit, each unit consisting 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 Dec. 13, 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 months plus one day, which will expire on April 14, 2020.
The net proceeds of the offering will be used in part to fulfill timely delivery of sales of products as previously announced and to now expedite current and new deliveries to Europe (see press release of Oct. 16, 2019) and for general working capital purposes.
Dr. Mosolf stated: "Mosolf is committing operating capital in the future of DynaCERT's HydraGEN technology because it is vitally important to reducing pollution in Europe. At Mosolf, we want to lead the way in many countries and with many governments at all levels of government to reducing harmful emissions by transport vehicles. This commitment is our newest priority going forward in 2020. We intend to continue to invest in this technology for many years to come."
Jim Payne, president and chief executive officer of DynaCERT, stated: "Our board is very pleased to welcome the strong commitment and marketing and technical support in the future of our company by Dr. Joerg Mosolf, a strong investor in Europe. The proceeds of this offering further expedites the prompt deliveries of previously announced orders which are of great strategic importance to DynaCERT."
About DynaCERT Inc.
DynaCERT manufactures and distributes carbon emission reduction technology for use with internal combustion engines.
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