dynaCERT announces settlement of debt
TORONTO, June 20, 2013 /CNW/ - dynaCERT Inc. (TSX -V: DYA) ("dynaCERT" or the "Corporation") today announced that its 60% owned subsidiary HydroFuel LLC ("HydroFuel") entered into a definitive agreement for debt settlement with Alisar Corporation ("Alisar").
In 2004, Alisar (a company controlled by one partner of HydroFuel) advanced US$3,031,149 (the "principal amount") to HydroFuel to pay off its line of credit. This loan was unsecured, with 4.1% annual interest rate, payable monthly. The accrued interest on the loan payable amounted to CAD$1, 020,000 as at March 31, 2013.
All parties agreed to irrevocably waive and release the other from any claim, demand or action in connection with this settlement of debt for US$3,031,149 plus all accrued interest, on full and final payment of US$180,000 by dynaCERT to Alisar. As of June 18th, 2013 dynaCERT has made payment and the balance owed by HydroFuel to Alisar has been forgiven.
"We are pleased to see this matter resolved and removed from our financial statement". States Mr. Jim Payne CEO of dynaCERT. "The extinguishment of the total debt liability of US$3,031,149 plus accrued interest of CAD$1,020,000 will be reflected in our 2013 second quarter financial statement".
Mr. Rakesh Malhotra has joined the Corporation as its Chief Financial Officer (CFO). "We are excited to have Rakesh on our team; Rakesh provides increased financial strength and leadership to our executive group". States Mr. Grove Bennett, President of dynaCERT.
About dynaCERT Inc.
dynaCERT Inc. manufactures, distributes, and installs Carbon Emission Reduction Technology for use with internal combustion engines. Our patent-pending technology creates hydrogen and oxygen on-demand through electrolysis and supplies these additives through the air intake to enhance combustion, resulting in lower carbon emissions and greater fuel efficiency. Our technology is currently in use with on-road applications and we continue to explore options with power generation applications. More information can be found at www.dynacert.com
This release includes forward looking statements, which are based on certain assumptions and reflects management's current expectations. These forward looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations. Some of these factors include: general global economic conditions; general industry and market conditions and growth rates; uncertainty as to whether our strategies and business plans will yield the expected benefits; increasing competition; 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; changes in laws and regulations, includes codes and standards, intellectual property rights, and tax matters; 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.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of the release.
SOURCE dynaCERT Inc.