dynaCERT Launches $6,000,000 Non-Brokered Private Placement of Equity

Rhea-AI Summary

dynaCERT Inc. initiates a non-brokered private placement of up to 40,000,000 units

Positive

• The private placement aims to raise a maximum of $6,000,000 for dynaCERT Inc.
• The funds will be used for financing sales of the Company's HydraGEN™ Technology Products and other corporate purposes

Negative

• None.

NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION TO U.S. WIRE SERVICES

TORONTO--(BUSINESS WIRE)-- dynaCERT Inc. (TSX: DYA) (OTCQX: DYFSF) (FRA: DMJ) ("dynaCERT" or the "Company") is pleased to announce that it initiated a non-brokered private placement of equity (the Offering”) of up to 40,000,000 units. Each unit (a “Unit”) shall be priced at $0.15 per Unit for a total maximum Offering of $6,000,000. All dollar values are in Canadian dollars.

Each Unit consists of one (1) common share of the Company (a “Common Share”) and one-half (1/2) of a common share purchase warrant. Each whole warrant (a “Warrant”) is exercisable into one (1) Common Share at an exercise price of $0.20 per Warrant at any time for a period commencing upon the closing of the Offering (the “Closing Date”) for a period of thirty-six months thereafter. The Closing Date will occur on or about October 31, 2023, or such date as determined by the Company in consultation with its financial advisor.

If at any time after the date that is four months and one day after the Closing Date, the closing trading price of the Common Shares on the Toronto Stock Exchange is greater than $0.35 per Common Share for a period of ten (10) consecutive business days, then the Company may give notice thereof to the holders of the Warrants, and, in such case, the expiry time of the Warrants shall be accelerated and shall be the 30^th day after the date on which such notice is deemed to have been given by the Company.

The gross proceeds of the Offering will be used to finance sales of the Company’s HydraGEN™ Technology Products to participants in the mining, oil & gas, transportation and generator sectors on a global basis, for working capital, for general corporate purposes, an equity investment in Cipher Neutron Inc., and to settle advisory fees and permitted finders’ fees under applicable securities legislation, including advisory fees payable to Canaccord Genuity Corp., a financial advisor to the Company.

The Offering will be offered for sale to purchasers (i) in all provinces of Canada pursuant to available private placement exemptions, (ii) in the United States on a private placement basis pursuant to available exemptions from the registration requirements under the United States Securities Act of 1933, as amended, and (iii) in offshore jurisdictions as may be agreed to by the Company pursuant to available prospectus or registration exemptions in accordance with applicable laws.

The Units will be qualified investments eligible for RRSP, RESP, RRIF, TFSA and DPSP accounts in Canada.

The Units (and underlying securities) shall be subject to a statutory hold period that will extend four (4) months plus one day from the Closing Date.

Subject to applicable securities regulation, the Company may pay finders fees consisting of up to 5% cash and 5% dealer warrants in connection with the Offering. The dealer warrants shall bear the same terms as the terms of the Offering.

Closing of the Offering is subject to completion of formal documentation and receipt of all necessary regulatory approvals, including approval of the Toronto Stock Exchange.

The securities offered hereby have not and will not be registered under the United States Securities Act of 1933 (the "1933 Act") and may not be offered or sold in the United States or to U.S. persons (as defined in Regulation S under the 1933 Act) unless the securities have been registered under the 1933 Act or are otherwise exempt from such registration.

About dynaCERT Inc.

dynaCERT Inc. manufactures and distributes Carbon Emission Reduction Technology along with its proprietary HydraLytica™ Telematics, a means of monitoring fuel consumption and calculating GHG emissions savings designed for the tracking of possible future Carbon Credits 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, which has shown to lower carbon emissions and improve 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. Website: www.dynaCERT.com.

READER ADVISORY

This press release of dynaCERT Inc. contains statements that constitute "forward-looking statements". Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause dynaCERT’s actual results, performance or achievements, or developments in the industry to differ materially from the anticipated results, performance or achievements expressed or implied by such forward-looking statements. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. Actual results may vary from the forward-looking information in this news release due to certain material risk factors. This news release is not intended for distribution to U.S. news services or for dissemination in the United States.

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.

Neither the Toronto Stock Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Toronto Stock Exchange) accepts responsibility for the adequacy or accuracy of the release.

On Behalf of the Board
Murray James Payne, CEO

View source version on businesswire.com: https://www.businesswire.com/news/home/20231016996707/en/

For more information, please contact:



Jim Payne, CEO & President

dynaCERT Inc.

#101 – 501 Alliance Avenue

Toronto, Ontario M6N 2J1

+1 (416) 766-9691 x 2

jpayne@dynaCERT.com



Investor Relations

dynaCERT Inc.

Nancy Massicotte

+1 (416) 766-9691 x 1

nmassicotte@dynaCERT.com

Source: dynaCERT Inc.

FAQ

What is dynaCERT Inc.?

dynaCERT Inc. is a company listed on the Toronto Stock Exchange (TSX: DYA) and the OTCQX (DYFSF) that specializes in clean technology solutions for the mining, oil & gas, transportation, and generator sectors.

What is the private placement for?

The private placement is being conducted to raise funds for dynaCERT Inc., primarily for financing sales of its HydraGEN™ Technology Products and for general corporate purposes.

What is the price per unit in the private placement?

Each unit in the private placement is priced at $0.15 per unit.

What is the maximum offering amount?

The maximum offering amount in the private placement is $6,000,000.

What are the terms of the warrants?

Each unit in the private placement includes one-half of a common share purchase warrant. Each whole warrant is exercisable into one common share at an exercise price of $0.20 per warrant.

When is the closing date of the private placement?

The closing date of the private placement is expected to be on or about October 31, 2023.

What will the proceeds be used for?

The proceeds from the private placement will be used for financing sales of the Company's HydraGEN™ Technology Products, working capital, general corporate purposes, an equity investment in Cipher Neutron Inc., and to settle advisory fees and permitted finders' fees.

What are the eligibility criteria for the units?

The units offered in the private placement are qualified investments eligible for RRSP, RESP, RRIF, TFSA, and DPSP accounts in Canada.

Are the securities offered registered under the United States Securities Act of 1933?

No, the securities offered in the private placement have not been and will not be registered under the United States Securities Act of 1933, and may not be offered or sold in the United States or to U.S. persons unless they have been registered or are exempt from such registration.