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Market
Equities Research - Market Bulletin
October 1, 2020 6:38 AM ET
dynaCERT Inc. Set for Meteoric-Like Rise as an ESG Powerhouse
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dynaCERT is at the beginning of a major
upside move as the market has only started to price in the
reality of the magnitude developing for its fuel saving and
Carbon Emission Reduction Technology.
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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.
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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. dynaCERT is now in the
process of certification so carbon credits generated and tracked
can be sold on the open market. This alone, once approved and
gained traction, has serious potential to catapult dynaCERT into
a multi-billion Fortune 500 company.
dynaCERT Inc. (TSX: DYA) (OTCQB: DYFSF) (Frankfurt: DMI)
recently graduated to trading on the Canadian TSX Big Board. As a
condition, prior to listing transition, the TSX exchange required
dynaCERT do one capital raise based on a brokered deal (despite the
fact the Company did NOT require the funds). Demand to participate
was exceptionally high and as a result 5 brokers came together as
a consortium, acknowledging the future is so bright for dynaCERT
that they all wanted to be part of this emerging Environmental,
Social and Governance (ESG) investment. HG Carbon Emission Reduction
Technology has taken many years (~C$60 million) to perfect and is
now just beginning to scale, with major potential as the only
company with the patents and technology, proven, in production, able
to provide an immediate solution to reduce global air pollution.
The broker consortium did a bought deal, raising C$21 million from
institutions overnight, however dynaCERT paired it down and accepted
~C$8M.
dynaCERT is now recognized in important circles as the future of
carbon credits. The United Nations has certified dynaCERT’s
product under its Smart Sustainable Cities Program. Additionally,
earlier this year, dynaCERT’s CEO was invited to be a keynote
speaker at the World Climate Summit in the UK (originally scheduled
for November-2020), they asked the CEO to speak on the world's
carbon credits and the future of the world's carbon credits. Due to
COVID19 the summit has been postponed until the later part of 2021,
but the fact dynaCERT is earmarked as a keynote guest speaker speaks
volumes to the level of coordinated governmental support for
dynaCERT's carbon credit tracking/auditing technology to be advanced
globally as the only universally accepted standard ready for mass
adoption. See overview further below of dynaCERT’s proprietary
HydraLytica™ tracking & auditing software, how it is key for the
Company’s carbon credit plans, and just how big this is setting up
to be.
dynaCERT Inc. is looking exceptionally strong on all fronts.
The Company has re-emerged from the COVID-19 hiatus financially
healthy and appears just now entering a hockey-stick pattern of
growth. Shares of DYA currently trades under C$1/share and present
an opportunity for investors to experience extraordinary gains. In
fact, the Company’s CEO, Jim Payne, minces no words, he clearly
envisions dynaCERT eventually growing to becoming a Fortune 500
company. The independent investment bank GBC AG, headquartered in
Augsburg, Germany upgraded (in August-2020) its near-term price
target for DYA to $2.20/share, and sees a mid-term pathway to even
significantly higher valuations. There are over 1 billion diesel
engines in the world, including over 200 million diesel trucks --
dynaCERT’s HG units are just starting to penetrate various
industrial sectors, plus there is the entire carbon credit division
with dynaCERT taking the lead globally, it is still under
development and yet to begin monetization; some investment pundits
have stated a pathway to >$20+/share near to mid-term is not
unreasonable with the right news flow.
A class-8 engine HG-1 unit goes out the door to a dealer for
~C$6,200 to dynaCERT netting 50% gross margins – the math will reach
in the multi-billions of dollars in short-order as this takes off
globally. Haywood Securities performed an upside case (3 shifts/day
= 72,000 units/yr) based on dynaCERT’s current production capacity
of HG-1 units at its facility in Toronto, Ontario and derived
C$223M/annum in gross profit headed dynaCERT’s way. Then there is
the potential for refrigeration HG2 units (reefer units); there are
three times the number of reefer units than there are class-8 trucks
and many of these reefer units run 24/7 keeping food cold. Then add
in the future potential for recurring revenue streams from carbon
credit revenue as an attractive added value proposition. dynaCERT
now has ~40 dealers worldwide and is looking at serious growth
potential. In Europe the MOSOLF Group has taken the lead in Europe,
opening dedicated showrooms, and hiring scores of new employees
dedicated 100% full-time to marketing and installation of dynaCERT's
HG technology in Germany, France, Benelux, and Poland. Additionally,
the recent (August 31, 2020) addition of the Alltruck Network in
Europe is major and should contribute toward exploding growth (Alltruck
has over 800 centers across Europe). Already dynaCERT is in
discussion with other counties (e.g. India and Mexico) to build
plants.
Emerging from COVID-19, the Company has more than adequate cash
reserves (~C$20M cash entering September-2020 and virtually no
significant debt), a better Assembly Plant, an improved R&D
facility, significant product improvements, and is working on
clearing a continued backlog of previously announced purchase
orders, additionally new orders (including many reorders from highly
satisfied clients looking to expand adoption of the technology that
saves them money) continue to come in at an increasingly faster
rate. For example, just this month, the Company announced that it
has agreed to equip diesel powered vehicles of the City of
Woodstock, Ontario.
Below is an overview of dynaCERT’s unique and proprietary
technologies broken into three categories:
1) HydraGEN TM,
2) HydraLytica TM, and
3) dynaCERT's carbon credit management system.
1) dynaCERT’s HydraGENTM 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. Transport trucks were dynaCERT’s first target market, the
Company now makes different sized HG units and more industries are
starting to adopt the technology -- look for exponential growth
across multiple sectors.
Figure 1a&b. (above) HG1 Unit installed on diesel truck.
Figure 2. (above) Various HG unit models.
12
different verticals:
Figure 3. (above) Industries served, 12 different verticals.
The
Company currently installs its HG technology on class 8 trucks,
buses, refrigerator trailers, small trucks, electrical power
generation units of all sizes, farming equipment and agriculture
equipment, construction equipment, mining equipment, and it is now
moving into marine vessels (the first ships are now being organized
for installs). The Company believes it will also at some point in
the future be installing its technology on ocean going vessels
(which are major polluters; one container ship can spew the
equivalent pollution per annum of 50 million cars), train
locomotives, and it is currently working with a group in Europe to
develop a unit for passenger vehicles.
dynaCERT is gaining a strong foothold in the mining sector now,
where a single piece of large equipment can burn over $1M/year in
fuel. Feedback from mining experts and dealers servicing this
industry reveal that it is not uncommon for a capital outlay (to buy
a HG unit) to be recouped with a ROI payback within 8 months from a
nominal 5% fuel savings.
2) HydraLyticaTM is dynaCERT’s proprietary
software with remote real-time telematics which the Company has
retained worldwide experts to establish an audit trail of fuel
savings and future carbon credits. dynaCERT's telematics developer
invented Apple PayTM and PayPalTM. Related to HydraLytica™, dynaCERT
is also greatly escalating its scope of applications and utility to
respond to the growing industry needs of Logistics companies and the
broader Trucking Management software ecosystem. On September 23,
2020 the Company announced that dynaCERT International Strategic
Holdings Inc. (“DISH”), a wholly-owned subsidiary of dynaCERT, has
agreed with Corsario Ltd. of Mississauga, Canada, dynaCERT’s
HydraLytica™ software developer, to magnify and maintain the
functionality of its new proprietary suite of FreightTech software
applications. GP LogiX Inc., a wholly-owned subsidiary of Corsario
established specifically for this single purpose, will market the
functionality of dynaCERT’s new FreightTech software and share
equally with DISH all financial benefits, thus providing yet another
stream of cash flow to dynaCERT, through DISH.
3) dynaCERT's carbon credit management system: 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. Looking at
dynaCERT’s long haul trucking market alone, a truck can generate as
much as $3,000 in carbon credits per annum. dynaCERT’s plan is once
it has gone through approval with VERRA authority, dynaCERT will
maintain 50% of the carbon credit$ and 50% of it will go to the
fleet owners. The Methodology now in for approval with VERRA USA
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 application is currently being dealt with,
led by Environmental-partners of the UK.
The bottom line: The time to establish a long position in
dynaCERT is now. Its technologies are proven, proprietary, and
patented. The Company has the ability to monitor and monetize carbon
credits. dynaCERT has enormous near-term growth potential
that is reflected in the late stage trials and certificate processes
in large markets in Canada, the USA, South America, Europe, South
Asia, Middle East. This has the potential to get very large across
vertical market segments from trucks, reefer trailers, buses, heavy
construction, mining equipment, electrical power generation, marine
and locomotive. The technology has a compelling value proposition to
end users. The Company presents a very attractive business model
with strong margins, has a very experienced and seasoned management
team and board to realize success.
For further DD on dynaCERT Inc. see the following URLs:
Corporate website:
https://dynacert.com
Recent Technology Journal Review:
https://technologymarketwatch.com/dya.htm
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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:
Fredrick
William
Market Equities
Research Group
f.william@marketequitiesresearch.com
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