dynaCERT Provides Update on the Purchase Order for HydraGEN™ Units Destined for Guyana

Rhea-AI Summary

dynaCERT Inc. provides an update on the purchase order of its HydraGEN™ Technology Units for Guyana. The Company faced delays in deliveries due to unresolved issues and litigation involving the purchase order.

Positive

• None.

Negative

• Delays in deliveries due to unresolved issues
• Litigation involving the purchase order

TORONTO--(BUSINESS WIRE)-- dynaCERT Inc. (TSX: DYA) (OTCMKTS: DYFSF) (FRA: DMJ) ("dynaCERT" or the "Company") provides an update regarding a purchase order of its HydraGEN™ Technology Units destined for Guyana (for details, see the Company's press release dated May 26, 2023 and the update dated July 31, 2023).

The recipient of these HydraGEN™ Technology Units is a company located in Guyana (the “Recipient”). As announced on July 31, 2023, the Company previously delayed deliveries of HydraGEN™ Units under this order pending further notice by either the Recipient or its representatives, that certain outstanding issues were resolved to everyone’s satisfaction. Most notably, the Company was obliged to delay the delivery of all but two such HydraGEN™ Units and the Company was awaiting from the Recipient, through representatives, certain usual information regarding the specific electric voltage, engine information, On Board Diagnostic port types, and other data pertaining to the vehicles and equipment on which the HydraGEN™ Units of the Company are to be installed. Such information is necessary for the final assembly, packaging and shipping of the HydraGEN™ Units. The Company was also previously advised by representatives of the Recipient that the two HydraGEN™ Units that were delivered in 2023 are still awaiting clearing from Guyanese customs by an agent of the Recipient.

Despite continued ongoing dialogue with representatives of the Recipient of these HydraGEN™ Units over past months, none of the aforementioned issues have been resolved to date. Further, the Company has been made aware of litigation that appears to involve the purchase order in question. This litigation consists of an initial claim requesting the return of the deposit that was received in May 2023, followed by a third-party claim among various extraneous parties claiming damages. These two matters have now been consolidated by the court. At a recent case conference the third party plaintiff’s counsel advised the court that he has agreed to give the Company a waiver of defence in respect of the third-party claim (such that the Company shall only require a defence to the deposit claim). The Company believes that this litigation has no merit against dynaCERT. Given the emergence of litigation and lack of progress in resolving delivery issues over past months, the Company has determined to suspend indefinitely this purchase order pending resolution by courts or clarification of the litigation issues in question.

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/20240328153378/en/

For more information:

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 the update provided by dynaCERT Inc. regarding its HydraGEN™ Technology Units?

dynaCERT Inc. provides an update on the purchase order of its HydraGEN™ Technology Units for Guyana.

Why were there delays in deliveries of the HydraGEN™ Units?

Deliveries were delayed due to unresolved issues such as missing information required for final assembly and clearing of units from Guyanese customs.

What litigation is mentioned in the press release?

Litigation involves an initial claim for the return of the deposit received in May 2023 and a third-party claim for damages, which have been consolidated by the court.

Why has dynaCERT Inc. decided to suspend the purchase order indefinitely?

The Company has decided to suspend the purchase order indefinitely due to the emergence of litigation and lack of progress in resolving delivery issues.