Figure 1. dynaCERT HydraGEN^TM HG1 unit on diesel truck. dynaCERT Carbon Emission Reduction and fuel-saving technology is award winning and on an accelerated growth adoption curve that is expected to translate into significant sales and upside share price revaluation.

dynaCERT Establishes Strategic Alliance with MOSOLF Group of Europe

TORONTO, Oct. 16, 2019 (GLOBE NEWSWIRE) -- dynaCERT Inc. (TSX VENTURE: DYA) (OTCQB: DYFSF) (FRA: DMJ) (“dynaCERT” or the “Company”) is pleased to announce that it has concluded three (3) agreements with Mosolf SE & CO. AG, of Germany (“MOSOLF”):

• first, an important strategic Memorandum of Understanding (the “MOU”) defining the collaboration for penetration in numerous vertical markets in Europe of dynaCERT’s hydrogen technology;

• second, a Dealer Agreement for Germany; and,

• third, a purchase order for delivery in 2020 of 1,000 of dynaCERT’s HydraGENä Technology Units.

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 thirty-eight (38) technical centers and a multi-modal fleet that combines different resources for road, rail and river transportation methods with numerous points of sale and service throughout Europe. (see: https://www.mosolf.com/en.html)
 
Under the MOU, dynaCERT has agreed to appoint MOSOLF and its subsidiaries as dealers for Germany and other countries in Europe (initially, Czech Republic, Poland, France and Benelux) with the rights to sell and install the Company’s HydraGENä Technology products throughout the European Union. The first of such MOSOLF Dealer Agreements, the appointment of MOSOLF as dealer for Germany, was signed and formalized concurrent with the MOU.
 
Under the MOU, MOSOLF shall also be marketing dynaCERT’s HydraGENä Technology to the federal and local Government entities in Germany including many towns, municipalities and cities.
 
Under the MOU, MOSOLF and dynaCERT have also commenced negotiations to establish a joint venture whereby MOSOLF, in conjunction with dynaCERT, will fund, develop, certify and offer a customized HydraGENä Technology to the Passenger Car After-Market in Europe capitalizing on MOSOLF’s extensive commercial relationships in the transportation industry throughout Europe.
 
Dr. Joerg Mosolf, Chief Executive Officer of the MOSOLF Group stated, “We are very pleased to represent dynaCERT‘s HydraGENä Technology products throughout Europe. After dynaCERT’s recent KBA Homologation in Germany, the road has been paved for an intense marketing campaign on a continent where dynaCERT ’s technology is much-needed and expected to make quick inroads throughout the transportation industry. Our environmental mission is aligned with dynaCERT.”
 
Enrico Schlaepfer, dynaCERT ’s Vice President of Global Sales, stated, “The MOSOLF association is a landmark milestone for dynaCERT in Europe. MOSOLF is well-established in our target transportation market with professional service centres located across Europe. Our European vision has finally become reality. We are embarking on a sales and marketing campaign of exceptional strength and integrity with a partner like MOSOLF.”
 
Jim Payne, President and CEO of dynaCERT stated, “I thank Dr. Joerg Mosolf, Mr. Gregory Hancke, COO of MOSOLF, and Mr. Detthold Aden, Senior Advisor to MOSOLF, personally for coming from Germany to Toronto to confirm the important details which will set the strong foundation of dynaCERT’s push into the continental European market. We are very pleased to have a capable partner like MOSOLF and have confidence for our continued growth with their highly respected team in Europe.”
 
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, reefer trailers, off-road construction, power generation, mining and forestry equipment, marine vessels and railroad locomotives. Website: www.dynaCERT.com

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Executive Summary

dynaCERT is a leading hydrogen technology company developing carbon emissions reduction and fuel economy solutions for diesel-powered combustion engines. The company has proven, proprietary and patented technologies. Their disruptive solution incorporates emissions reduction, fuel savings, carbon credit monetizing solutions as well as fleet management software, all in one product.
 
The company addresses the needs to reduce NOx, COx and TCH emissions in order to comply with new-stage V environmental regulations with their HydraGEN TM line of products. These devices also improve the engine fuel efficiency, providing clients with a high ROI (return on investment).
 
The company has established a worldwide sales network and has the potential to deploy its solutions in Canada, USA, Europe, South America, Mexico, Middle East and Asia. The company has already sold units to governments and private companies on three continents.
 
dynaCERT has overcome critical engineering challenges and now has a complete line of products that, combined, can reach a total market of USD 6 trillion with no known direct competitor, including but not limited to industries such as transportation, rail, marine, oil/gas, stationary generators and mining.
 
On this basis, we conservatively project the company to have yearly revenues of over USD 500M within the next seven years with a gross margin of close to 40%.
 
The company’s main product, HydraGEN TM, costs between USD 6,200$ and 8,000$ and has an ROI of 9 - 18 months based on their fuel efficiency. The company has also partnered with a financial institution to offer a monthly payment solution for HydraGEN TM clients, limiting their capital expenditure for acquiring and installing dynaCERT products.
 
The company has just received the ABE certification from Germany. This is a transformative step in the history of the company as they can now sell their products in Europe. Furthermore, the certificate is recognized in Asia, South America and the Middle East. With this crucial step made, we believe that the company can achieve massive sales in the next few years. The ABE certification also serves as a strong stamp of approval.
 
The company has an assembly facility in Toronto, Canada, that can produce up to 12,000 units a month for a yearly total of 144,000 units. With a strong adoption rate within the next few years, we project the company to sell just under a thousand units in 2019, 10,000 in 2020 and over 30,000 by 2021.
 
Accordingly, we project that the company will post total gross revenues of USD 4.6 million in 2019 USD 62.4 million in 2020 and USD 223.9 million in 2021.
 
Based on our DCF valuation, we have calculated a price target of 1.90 CAD (1.43 USD; 1.30 EUR). Against the background of the high upside potential, we assign a BUY rating.

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