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Market
Equities Research - Market Bulletin
March 16, 2021 8:30 PM UTC
dynaCERT Inc. Presents Opportunity as a Unique Key Participant in
the New Hydrogen Economy
dynaCERT Inc. (TSX:
DYA) (OTCQX: DYFS) (Frankfurt: DMJ)
dynaCERT Inc. presents
opportunity for investors as being uniquely positioned in both
the old-school carbon economy as an ESG solutions provider with
award winning technology, and the new hydrogen economy of the
future with 17 plus years of Research and Development,
scientific knowledge, and design advancements within hydrogen
generation.
This week dynaCERT
announced news in a press release entitled "dynaCERT
Achieves Local and Global Milestones and is Part of Hydrogen
Strategy Coalition"; we urge investors to read the full release
-- in short: 1) dynaCERT is a Key Participant in New Hydrogen
Strategy Working Group the government of Ontario is undertaking,
2) the Company announced new sales in both the trucking and
mining industry, 3) the Company is advancing towards putting
units on bus transportation for City of Woodstock after the City
experienced highly favourable trials on garbage trucks, 4)
although dynaCERT's core business is supplying hydrogen on demand
(not stored) -- the Company announced new product development of
hydrogen production and storage units including pressurized hydrogen
that will significantly cut down the compression cost making it
affordable to use in small- and large-scale applications such as
off-grid power supply, fuel cells etc., and 5) dynaCERT
committed to achieve and participate in 'net zero emissions goal by
2050', reiterating the fact that Carbon Credits remain a huge future
revenue stream for dynaCERT with its Patent Pending Carbon Capturing
Methodology while capturing credits for the Carbon Saved with its
Hydrogen Generating (HG) electrolysers.
What is particularly
interesting in the press release is that it is apparent dynaCERT is
looking to leverage its expertise to become a significant player in
the new hydrogen economy. In the release dynaCERT’s Head of Research
and Development mentioned upcoming products such as the Anion
Exchange Membrane and the Cation Exchange Membrane electrolysers
that will produce pressurized Hydrogen to meet the global demand.
These are new revelations with significant potential to act as share
price appreciation catalysts as related news flow occurs.
Last month we provided
a synopsis of 'reasons for establishing a long position in dynaCERT Inc.' The following is
reprinted copy. Read the reasons over and couple them with the
revelations of the press release from this week -- the Ontario
government's approach to carbon emissions reductions revolves around
business solutions -- it is safe to say the risk-reward metrics
favour establishing a long position in dynaCERT now while its
trading under $1/share.
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Reasons for establishing a long position in dynaCERT Inc.
"Spectacular Carbon Emission Reduction Technology, uniquely
positioned in a massive market, very early in the adoption curve,
extreme prospects and potential for rapid sales growth of HG
technology in 12 different verticals, enormous upside potential in
carbon credits, exceptional top talent, and all the pieces in place
to make it happen. Conditions
are right;
higher energy costs, developments/news catalysts, greater awareness,
increased carbon taxes and incentives create tailwinds for the
adoption of dynaCERT’s award-winning technology.”
1.
Spectacular Carbon Emission Reduction Technology – the ‘CERT’
in dynaCERT;
dynaCERT’s
HydraGEN™ (HG) technology is proven (on diesel trucks) to result
in up to 88.7% reduction in NOx emissions, ~50% reduction
in CO, 6-19% reduction in CO2, up to 57.1% reduction
in Total Hydrocarbon emissions, 55%+ reduction in particulate
matter (no black smoke), up to ~20% reduction in fuel
consumption, provides better torque, and lower maintenance
costs. HG is an advanced onboard electrolysis system which produces
and supplies elemental hydrogen and oxygen individually on-demand to
the air intake of diesel combustion engines for improving fuel
efficiency and lowering emissions. dynaCERT has spent over $60
million perfecting its HG technology (over 16 years to
commercialization). The technology is proven through multiple
top-level independent lab studies in various jurisdictions
around the globe (TUV North and South in UK, PIT Group in North
America, ICAT in India, labs in the UAE, etc…) to reduce harmful
emission in diesel transport trucks and improve fuel economy.
Noteworthy awards include; the winner of the 2018 Edison Gold
Award, 2019 Germany Innovation Award, and Gold Award from ESQR in
Germany.
HydraLytica™
is dynaCERT’s proprietary software with remote real-time telematics
that is able to establish an audit trail of fuel savings and
future carbon credits. dynaCERT's telematics developer invented
key systems for Apple Pay™ and PayPal™.
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2. Adoption
rate of HG-1 units into diesel transport trucks is nascent and
has potential to grow exponentially. The market is massive;
there are >60 million diesel-powered trucks, trailers and equipment
in North America alone, ~1 billion internal-combustion engines
worldwide on all types of diesel equipment, and ~100 million are
built world-wide each year. The potential for HG-2 units for reefers
(refrigeration) in North America, Europe, and Asia is massive.
dynaCERT will flourish as it further expands into mining (currently
being adopted by several miners now), buses, power generation,
marine/shipping, and rail. There are numerous satisfied clients
(here is a sampling of couple typical anecdotal testimonial/findings
WestCan Trucking Article, and
HydraGEN™ on 90t Mobile Crane Trial ), many clients rave of a
ROI from fuel savings well under two years. Look for the
Environmental, Social and Governance (ESG) value of the HG
technology to trump fuel savings as a sales driver once
environmental mandates from governments globally are advanced.
dynaCERT is uniquely positioned with the only technology
immediately available for wide-spread adoption to meaningfully and
cost-effectively offer a solution to the issue of air pollution
(e.g. it has been suggested that if Dynacert equipped ~1/3 of the
diesel trucks in Canada, that Canada will meet its Paris accord
target). The adoption curve is poised to explode for dynaCERT;
there are currently numerous companies and government bodies in
multiple countries world-wide in trials, reviews and discussions
regarding adoption plans. The potential from related news flow to
act as both a share price and adoption catalyst is immense as 2021 progresses,
couple this with the rise of energy prices of late and the case for
dynaCERT and its HG technology is increasingly apt to excel.
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3. dynaCERT is
now recognized in important circles as being at the forefront of
potential multi-trillion dollar Carbon Credit markets. The
United Nations has certified dynaCERT’s product under its Smart
Sustainable Cities Program. dynaCERT holds the world wide patents
on the means and methods of monitoring and monetizing carbon credits
within emission reductions in diesel engines, dynaCERT holds this in
12 different verticals.
Voluntary
Carbon Credit Market: In
January 2021 dynaCERT received approval from VERRA of its concept
methodology submission and is proceeding to the next steps that will
see carbon credits generated and tracked in order to be sold on the
open market. VERRA coordinates one of the largest voluntary carbon
credit exchanges and is a standard for certifying carbon emissions
reductions. The methodology uses dynaCERT's patented HydraGEN™
Technology to lower carbon emissions and its HydraLytica™ Telematics
technology to securely record carbon emissions and other
non-personal data from diesel and gas engines. dynaCERT’s plan, once
it is operational with the VERRA authority exchange, is to retain
50% of the carbon credit$ (for dynaCERT’s benefit) and 50% of it
will go to the fleet owners.
Jurisdictional Specific Carbon Credit Markets (incentive oriented,
taxes, or just straight out mandates):
dynaCERT is the only approved mechanism of its kind in the
voluntary carbon credit market, and this puts dynaCERT center-stage
for governments globally for coming home-grown jurisdictional carbon
credit programs.
The following is
an excerpt from an article published in Canada's National Observer
on February 12, 2021 that features dynaCERT in-part, and outlines
the push for more government action to incentivise use of
technologies that are available now; "The Ontario government is
setting its sights on a hydrogen economy, with a goal of
lowering carbon emissions and generating new jobs. British Columbia
is
partnering with the trucking industry in the
CleanBC Heavy-duty Vehicle Efficiency Program, which offers cash
rebates to truckers and fleet operators who install technology to
reduce emissions from ever-polluting diesel engines. The
transportation sector puffs out nearly a
quarter of all carbon emissions in Canada. And we can slash
those emissions immediately with the application of hydrogen-based
innovations. Canadian companies like dynaCERT are aggressively
marketing and furthering technologies that deliver immediate cuts to
emissions from dirty diesel with a device that reduces carbon
emissions by up to 57 per cent when used on transport trucks, buses,
mining equipment, and other diesel engines. The hydrogen-based
innovation also reduces fuel consumption by nearly 10 per cent,
which saves on costs and pays for itself within 12 months. The B.C.
government is helping truckers and fleet owners by offering $4,000
to install such devices, covering nearly half the cost."
The full article may be viewed here online.
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4. Potential
for share price to easily grow >50X quickly. dynaCERT is
attracting visionary investors with strong hands that understand the
potential, one such investor is Order of Canada member and precious
metal mining magnet Eric Sprott. Eric Sprott has made it clear he
sees the ESG and Carbon Credit potential angle as the major (coming)
catalyst. In a recent year-end/new-year corporate interview, the CEO
of dynaCERT disclosed the extreme level of latent potential poised
to be realized -- the CEO recounted an opinion expressed to him in
the closing weeks of 2020 by a securities analyst; “that
one worldwide patent you've got on the means and methods of
monitoring and monetizing carbon credits within an internal
combustion engine, that's a trillion dollars in itself.”
No doubt dynaCERT is apt to excel dramatically if (in our opinion
it’s only a matter of ‘when’) the ESG/ Carbon Credit ability of
dynaCERT is adopted as a solution in a coordinated fashion by
governments.
In the interim,
solid short-term share price prognostications are being made by
industry analysts;
Haywood
Securities: In mid-2020 dynaCERT was the subject of coverage by analysts at Haywood
Securities, the analysts noted how the investment landscape has
changed in the last year and that timing is right for an opportunity
to scale ESG technologies. The Haywood analysts discuss dynaCERT’s
current production capabilities, healthy margins, and profit
potential with existing facilities now; “(@3 shifts / day) 72,000
units/yr. Revenue (at C$6,200/unit) = C$446M in revenues … Gross
Profit (at 50% GM) = C$223M.” Additionally, the analysts point out
the future potential for recurring revenue streams from carbon
credit revenue as an attractive added value proposition.
January-2021 Haywood Securities listed dynaCERT Inc. in its
'Haywood Top Picks 2021' publication.
GBC AG:
The Investment Bank GBC AG currently provides coverage on dynaCERT
Inc. with a 'BUY' rating and a $2.20/share near-term price
target for TSX: DYA. The analysts at GBC AG outline a pathway
for even significantly higher price potential from 2022 - 2028 via a
multi-phase adoption curve covering three distinct product lines; 1)
HydraGEN™, 2) HydraLytica™, and 3) dynaCERT's carbon credit
management system.
●
TSX: DYA currently trades under C$0.70 with a market cap under C$275
million.
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5.
Exceptional people are now involved with dynaCERT on the R&D and
Advisory Board side. Noteworthy individuals associated with
dynaCERT include; David Bridge, one of the original developers from
Virgin Mobile, and also formerly of Research in Motion (known for
the Blackberry); FinTech Pioneer Brian Semkiw; Michael
Christodoulou, the former President of Cummins Diesel Canada; former
politician and policy expert Mr. Frank Klees; Harold Martin of
Martin Industries, a former Automotive Engineer at General Motors
with numerous world-class achievements under his belt; and carbon
credit experts from International Environmental Partners Limited of
the UK. The recent January-2021 addition of Harold Martin is
significant and we urge readers to view his profile ( see
http://news.dynacert.com/engage/dynacert-announces-strategic-oem-collaboration-with-harold-martin-21553
online) – Harold Martin has a long successful track record in the
automotive transportation industry of advancing and taking
technologies he gets involved with mainstream.
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6. All the
pieces are in place; dynaCERT has ABE certification for sales
globally, and now offers its HG units for sale world-wide through a
network of ~40 dealers. Some dealers have also significantly
invested into the Company; e.g. the MOSOLF Group have invested
directly into dynaCERT, and have taken lead in Europe by opening
dedicated showrooms and hiring employees to market and install HG
technology in Germany, France, Benelux, and Poland. H2Teck in Canada
has aggressively moved dynaCERT into the mining industry across
Canada, USA, Peru, Chile, Brazil, Paraguay, and others.
Additionally, the August 31, 2020 addition of the Alltruck Network
in Europe is a significant move that should contribute well toward
growth (Alltruck has over 800 centers across Europe). dynaCERT has a
state-of-the-art assembly plant in Canada with current production
capacity availability of 72,000 units/yr, and has plans to open new
facilities in Mexico, EU, and other locations as needed. Also
important to note is that dynaCERT Inc. is well capitalized with
adequate cash reserves (~C$16M cash entering Q4-2020 + ~$4M in other
current assets and virtually no significant debt).
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The Bottom
Line: dynaCERT Inc. trades on the TSX big board in Canada (TSX: DYA) and in
the USA on the top-tier OTCQX (symbol DYFS). The stock market is a
discounting mechanism, stocks are apt to trade based on future
prospects; highlights: spectacular Carbon Emission Reduction
Technology, uniquely positioned in a massive market, nascent in the
adoption curve, extreme prospects and potential for rapid sales
growth of HG technology in 12 different verticals, enormous upside
potential in carbon credits, exceptional top talent, and all the
pieces in place to make it happen – dynaCERT Inc. offers
investors now the opportunity for extraordinary gains in the months
and years ahead.
For further DD
on dynaCERT Inc. see the following URLs:
Corporate
website:
https://dynacert.com
Company’s
Jan-2021 Investor Presentation:
click here [PDF]
Recent
Technology Journal Review:
https://technologymarketwatch.com/dya.htm
# #
This bulletin may contain
forward-looking statements regarding future events that involve risk and
uncertainties. Readers are cautioned that these forward-looking statements are
only predictions and may differ materially from actual events or results.
Articles, excerpts, commentary and reviews herein are for information purposes
and are not solicitations to buy or sell any of the securities mentioned.
Contact information:
Simon Levinson
Market Equities Research Group
s.levinson@marketequitiesresearch.com
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