Technology Market Watch Journal
Sector Insight & Corporate Overviews of Quality Technology Companies
|
Preamble:
dynaCERT has exceptional global patents on unique technology
that has potential to make a significant positive impact on the
environment globally. Investors astute enough to recognise the
genesis of the most viable greenhouse gas reduction technology set
to propel to global dominance are apt to experience extraordinary
returns in shares of TSX: DYA. New investigative reporting from
International Mining magazine provides insight into how dynaCERT’s
technology is actively being integrated in the massive Collahuasi
Mine which recently received approval of the environmental impact
study from Chile’s environmental evaluation service SEA for a
US$3.2bn expansion of the operation, increasing processing capacity
to 210,000t/d from the current 170,000t/d — part of an initiative
aimed at extending the mine life by 20 years. See the article “Collahuasi
looks for shorter term Scope 1 emissions cuts with hydrogen
injection & synthetic fuels”.
------ ------ ------ ------ ------ ------ ------ ------ ------
Also note recent (August 22, 2023) news release "dynaCERT to Equip the City of Timmins with Winterized Carbon Emission Reduction Technology"; This is a very significant development as Timmins is a major natural resource town in Canada -- dynaCERT is rapidly getting a reputation in the mining industry, look for word of success from operators running diesel equipment all day to spread within the industry (and to engineers in other industries) and propel interest, trials, and sales in potentially a parabolic fashion.
------ ------ ------ ------ ------ ------ ------ ------ ------
Valuation Advisory: dynaCERT Inc. (TSX: DYA) (OTCQX: DYFSF) (Frankfurt: DMJ) is a Canadian-based emerging Environmental, Social and Governance (ESG) company focused on advancing its HydraGENTM (HG) Carbon Emission Reduction Technology and commercializing its ability to generate related Carbon Credits. dynaCERT Inc. presents exceptional opportunity for investors establishing a long position now as the Company finally gets back to meaningful marketing after a long Covid-19 hiatus, as higher diesel gas prices persist, and as successful pilot programs come to maturation, a confluence of events have resulted in a dramatic increase of interest in its technology. dynaCERT's HG technology has seen over $90 million in investment over the last 18 years to perfect it to the point its ready to scale with demand, with major potential as the only company with the patents and technology, proven, in production, and able to provide an immediate solution to reduce global air pollution (all while the user saves on fuel costs in the process).
What is HydraGENTM Technology?: dynaCERT tech essentially turns diesel engines into clean power. HG technology generates pure (elemental) H2 & O2 gases individually, on demand (not stored), and injects in a timed fashion interfaced with the engines onboard computer to burn diesel more completely, resulting in more power, less carbon fouling, and a reduction in pollutants. HG technology is controlled by a smart-ECU (the brains of the unit that interfaces with a truck engine’s computer) which can record the fuel savings and emission reductions while in operation, and provide an audit trail, essentially a greenhouse gas tracking system with the ability to account for future carbon credits. HG technology is proven world-wide in numerous rigorous high-level government and private testing programs to reduce harmful emission in diesel transport trucks; NOx reductions of up to 88%, CO reduction of up to 47%, total hydrocarbons reduction up to 57%, and reduction of particulate matter of up to 55% (eliminating black smoke), providing better torque, lowering maintenance costs, all while providing fuel-savings between 6% - 19%, and up to 51% reduction in DEF (diesel exhaust fluid) -- results which are unmatched by any other current technology.
Why is HG Technology Key in Today's Environment?: NOx is extremely hazardous to people's health and to the environment, contributing to the formation of smog and acid rain, as well as deteriorating the earth's protective tropospheric ozone. Besides saving the user money, the technology helps businesses operate in an environmentally sustainable fashion. NOx, CO, CO2, THC, and particulates are all harmful to the environment and are drastically cut with HG technology.
Figure 1. (above) HG1 Unit installed on diesel truck.
What are dynaCERT's Carbon Credits?
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's technology is able to produce carbon credits and it has a mechanism for the end-user to share 50% of the revenue. dynaCERT has the infrastructure and data center in place to launch this as a recurring revenue stream for both the company and end-users; it is in the final process with Verra (the leading global certification body and carbon credit exchange), the methodology is already approved, and the recognition of the technology's creation of carbon credits is already approved, Verra is just going through the final audit stage. The CEO of dynaCERT stated in May-2022 "we are expecting at some point this year we will actually be offering these carbon credits ... we have spent a lot of time, a lot of money and a lot of effort to get to this point." Verified Carbon Standard (VCS) Progam by Verra is the world's leading voluntary program for the certification of greenhouse gas emission reduction projects. The current price tag on carbon credits in the voluntary market is ~USD$60/t, in dynaCERT's long-haul trucking market alone each truck could potentially generate approximately a couple thousands of dollars in carbon credits per annum, and many experts predict the price will rise to $400 - $500/t within the next few years. See related August 25, 2022 release entitled "dynaCERT Advances its Verified Carbon Standard Application with Verra"; in-short dynaCERT is in final Step-4 of the approval process whereby an approved Validator authenticates the validation of methodology.
------ ------ ------ ------ ------ ------ ------ ------ ------ The following was first created by this publication on June 24, 2022, the stock price has risen since, however it has much further to appreciate; anything under 50 cents appears a super-bargain:
dynaCERT Inc. presents exceptional opportunity now & is poised for ramp-up in valuation
3 year chart as of June 24, 2022 -- Valuation commentary for this article is provided by Market Equities Research Group: Making the case for near-term multiple valuation appreciation as the turn-around is underway; the phone is ringing due to high diesel prices and increased awareness, pilot programs are yielding phenomenal results as is evidenced by recent mining sale (extra-large HG units that have massive price tags and healthy margins), various government incentives for customers to adopt technology are increasing and more are being discussed, governments and businesses are pushing for ESG, dynaCERT’s proprietary carbon credit system expected be 100% cleared Verra by year-end, and pipeline products will open new doors.
The share price of dynaCERT is apt to experience upside revaluation as the reality of the magnitude of demand building for its technology is appreciated by the market: This May-2022 is the first time the CEO of dynaCERT has given a public interview since the start of Covid-19 (click here to view the May 19, 2022 International Investment Forum Interview [running time 37 min.]). Going into Covid-19 the stock price was clipping along well above $1/share (with a >C$300M marketcap), orders were rolling in and momentum for the technology was high, then suddenly everything stopped (due to Covid the last 2 years have been brutal on dynaCERT -- marketing, production, training of installers, sales -- all came to a halt). The interview signals that operationally dynaCERT is now back, returning to full-swing, and investors should take note of the bullishness, here is a selection of some operational related takeaway notes we made listening to the interview;
In-short, the chemistry and excitement that saw DYA.TO clipping away near highs over $1/share in early 2020 appears to be rematerializing and the stock appears on fire-sale here. There is also a new concerted Federal effort in Canada (which dynaCERT is based out of) to see emissions cut in select industries (industries that dynaCERT is making impressive gains in); e.g. see "Canadian government pledges up to $100M to help reduce emissions at future BHP potash mine in Sask." Various equipment fleet professionals and engineers in-the-know will freely admit 'dynaCERT' is a name openly being discussed / offered as part of the solution in multiple key venues now (SEE RELATED August 9, 2022 International Mining Magazine article). HG related news flow is expected to be increasingly robust as the year progresses, throw in carbon credit finalization (in the genesis of a separate potential trillion dollar market) and investors are apt to experience a home-run.
------ ------ ------ ------ ------ ------ ------ ------ ------
dynaCERT Inc. currently has a market cap of only ~C$80 million, miniscule compared to where the Company is headed. Famed billionaire investor Eric Sprott currently owns ~8% of dynaCERT stock, he got involved because of the future of carbon credits and stated "I don't see a company out there better positioned to take advantage of that". We note that new investors establishing a long position now are getting involved at a price significantly lower than what Eric Sprott paid. Management & insiders have a fair amount of skin-in-the-game owning ~31% of the company, family offices own ~13%, institutions own ~5%, and retail shareholders hold ~42%. dynaCERT Inc. has institutional analyst coverage from two entities; 1) Haywood Securities, which views dynaCERT as an ESG benefactor with a Carbon Emission Reduction Technology that took years to perfect and is now ready to scale, and 2) the independent investment bank GBC AG which sees a pathway for significantly higher prices than the current via a multi-phase adoption curve.
Diesel engines are the lifeblood of all economies, and the size of the market potential is enormous (over one billion diesel engines operating worldwide on all types of diesel equipment). dynaCERT has 47 qualified dealers and agents globally that service 55 countries. It won't take long for the economics to flourish, especially considering the healthy gross profit margins per unit (dynaCERT’s cost is ~50% of the wholesale price = ~100% profit margin). dynaCERT currently has a state-of-the-art semi-automated manufacturing/assembly plant in Toronto, Ontario Canada which can produce 2,000 units per month on a single shift, and if need be double and triple that output when demand surges.
------ ------ ------ ------ ------ ------ ------ ------ ------
|
Below is an overview of dynaCERT's product line, product pipeline, and insight into the technology:
Figure 2. (above) -- HG units: The HG2 series was originally designed for refrigerated containers on trucks, which are small but often run 24/7. The HG2 units are also now applied to the engines of small to mid-size delivery trucks. The HG1 product is dynaCERT's flagship/go-to-market series for trucks (e.g. class 8). The HG4 and HG6 series of units were launched initially ~2 years ago and dynaCERT has since perfected them (e.g. recently added new air ride suspension system) for targeted industries; ideal for large stationary generators and heavy equipment used in the mining industry.
Figure 3. (above) -- Industries Served in 12 Different Verticals.
dynaCERT’s current market: The Company currently installs HG technology on buses, refrigerator trailers, small trucks, class 8 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 Company believes it will also at some point in the future be installing its technology on ocean going vessels, train locomotives, and diesel passenger vehicles.
------ ------ ------ ------ ------ ------ ------ ------ ------
Independent Validations and Certifications
Figure 4. (above) -- List of organizations that have verified the efficacy of dynaCERT's HG technology.
The PIT Group (considered the gold standard in Canada for transportation industry) validated the HG1 product under what they said is the optimum running condition of a truck; at a set speed of 100 km/hr for 100 km, they attained 5.9% improvement in fuel economy with the HG1 technology on top of what was already considered the optimal performance (without) – the engineers came back and put in writing that this was "results to be envied by the world.”
In Germany at Continental and EMITEC (for KBA Homologation, in order to sell in the EU), they verified the efficacy of dynaCERT’s HG technology on trucks and engineers had to go back repeatedly to re-test as they were literally stunned -- saying it was impossible, the improvement in results they were verifying; the results were so impressive they had to bring in an outside independent set of engineers to do the tests – they still got the same impressive results. When the findings were presented for KBA Homologation they were told to go back and verify it again – which they did.
HydraLyticaTM is dynaCERT’s proprietary software with remote real-time telematics for monitoring performance and other fleet tracking / management functions. dynaCERT's telematics developer invented key systems for Apple PayTM and PayPalTM.
------ ------ ------ ------ ------ ------ ------ ------ ------
Market Size
Figure 5. (above) -- Market Size. The potential market is enormous.
------ ------ ------ ------ ------ ------ ------ ------ ------
HG1 for class 8 trucks value proposition for the end-user
Figure 6. (above) -- Value proposition for the end-user; a typical user will experience a return on investment in under 9 months. The ROI on dynaCERT's HG technology has a three-times better value proposition in terms of capital outlay to savings compared to skirts on trucks, which are ubiquitous now (skirts cost C$3,000 can save 1% fuel, HG1 Cost the end-user ~C $10,000 and can save ~10% fuel = 1% for C$1,000). When skirts first came out adoption started slowly then the adoption industry-wide came very fast -- dynaCERT's HG technology stands a good chance to experience a parabolic adoption curve in time.
------ ------ ------ ------ ------ ------ ------ ------ ------
Recap of emission benefits
Figure 7. (above) Emission benefits. Image source: dynaCERT's Corporate Presentation
------ ------ ------ ------ ------ ------ ------ ------ ------
Recap of economic benefits
Figure 8. (above) Economic benefits. Image source: dynaCERT's Corporate Presentation
------ ------ ------ ------ ------ ------ ------ ------ ------
The Bottom Line
Shares of dynaCERT Inc. have highly favourable risk-reward metrics and present exceptional opportunity. dynaCERT Inc. is uniquely positioned in its field, competitors are essentially brown gas novelties in comparison (not viable competition); dynaCERT produces pure elements on demand and has highly sophisticated proprietary delivery and monitoring / auditing technology recognised by certifying bodies and leading engine manufacturers.
There are extremely high barriers to entry that uniquely position dynaCERT at the fore:
|
Content found herein is not investment advice see Terms of Use, Disclosure & Disclaimer. *Projections, estimates, and assumptions herein are based on journalistic opinion, not Company guidance . |
DynaCERT Inc.'s Governance and Management Skip to top
DYA.V's board of directors and management team has a well rounded combination of people that each contribute expertise in disciplines necessary for a successful organization:
R. Wayne Hoffman, Chairman, Director Mr. Hoffman has served as a member of the Corporation's Business Advisory Committee since October 2007. He is a Chartered Accountant and business executive with one of America's finest companies, Deere & Company, a corporation that is customer driven and places a heavy emphasis on quality and teamwork. He served as Vice-President, Finance at John Deere Limited for 25 years and President of John Deere Credit for over 8 years. As well, Mr. Hoffman spent two years in Deere & Company’s Business Development Dept. responsible for mergers and acquisitions. In his public service, Mr. Hoffman is volunteering as Treasurer of Christians For Israel, Canada, responsible for Planning and Development.
Mr. Jim Payne, President, CEO, and Director Mr. Jim Payne is a Director, President and Chief Executive Officer of dynaCERT. Mr. Payne also serves on the board of directors of a charitable organization, “Lindsey Villages for Families with Autism”, and on the board of directors of a junior Canadian oil producer, Saturn Oil & Gas Inc. (TSXV: SOIL), which is committed to be at the forefront of ESG (Environmental, Social, Governance) in the future. Mr. Payne is also Director and Chief Executive Officer, and overseeing his sons in the running of their privately held construction, consulting, project management and real-estate development companies operating in the GTA and surrounding areas. Mr. Payne also serves on the advisory board of Sparta Capital Ltd., a TSX-V listed company seeking investment in energy-saving technologies, and the advisory board of Connect Church (an affiliation of the Pentecostal Assemblies of Canada). Mr. Payne graduated from St. Clair College in Construction Engineering, Project Management and Estimating in 1974. He has over the years completed multiple business management and leadership courses and has a Certificate from the TSX-V for completing their course “Managing a Public Company”. He has successfully built and managed his own private companies for over 40 years. This provides Mr. Payne with years of experience in accounting, business leadership, and the legal aspects of governance. Over the last decade, Mr. Payne has taken his natural networking skills and built on them to create strong team dynamics that lead to success and generate movement. With a strong leadership presence, Mr. Payne is leading dynaCERT in a way that has helped to streamline corporate activities, generate growth, form new partnerships, and bring the corporate vision to a reality.
Jean-Pierre Colin, Executive Vice President, Director Mr. Colin is a corporate strategy consultant to high-growth publicly listed companies. He has been a recognized senior securities industry executive and effective investment banking professional providing financing and mergers and acquisitions services to numerous prosperous issuers in Canada. As a result of his extensive financial background throughout his career, he has been called to lead teams of corporate finance professionals at national securities dealers, such as Richardson Greenshields, JP Colin Securities, Deacon Capital, Octagon Capital and Desjardins. He has also served as a high-profile corporate board director and C-suite executive of numerous public companies, often chairing audit committees, compensation committees and corporate governance committees, including with Premier Gold Mines; Wolfden Resources, sold to Zinifex for over $350 million; Virginia Gold whose Eleonore property was sold to Goldcorp for over $ 1 billion; and, Pelangio Mines, the former controlling shareholder of Detour Gold, one of Canada's largest gold mining operations.
Richard Lu, Director Richard has more than 25 years of global experience developing and implementing business strategies for organizations in North America, Europe and Asia. He has extensive experience in the energy industry. He was the President of Sky Solar (Canada) Ltd., and a Managing Director at Sky Solar Holdings Co., Ltd. Richard was the VP of Business Development at ARISE Technology Corporation, where he was instrumental in securing its long-term supply chain funding of close to $1 billion dollars. Richard also previously held the position of Chief Conservation Officer and VP of Toronto Hydro Corporation, where he developed and executed a sweeping portfolio ($110 million) of Conservation, Demand Management and Distributed Energy programs and was instrumental in creating an energy conservation culture in Ontario. Prior to that he was the Vice-President of Environment, Health and Safety, ensuring Toronto Hydro Corporation’s commitment to providing a safe and healthy workplace for employees and the strategies for achieving sustainable development and growth are successfully met. Richard has held senior positions with Enbridge Gas Distribution, Husky Injection Molding Systems Ltd., and Dillon Consulting.
Amir Farahi, Director Amir Farahi is a Government Relations and Public Affairs consultant. He is the Principal at Blackridge Strategy Inc. (“Blackridge”) one of the largest Government Relations firms in Southwestern Ontario. Blackridge has established a strong working relationship with all three levels of government in Canada, Federal, Provincial and Municipal, and has a solid track record with its clients in real estate, construction, labour, health care, and heavy industrial industries. Amir was a senior advisor to Fanshawe College and was instrumental on the establishment of its innovation centre which led to the creation of Fanshawe’s Innovation Village i4C Hub in Q4 2018. This is a one stop centralized shop that supports and provides services through the Centre for Research and Innovation, the Library research team, the Canadian Centre for Product Validation, Centre for Advanced Research in Biotechnology and LEAP junction to innovators on campus. Amir was a columnist for 3 years for Metroland Media Group, a subsidiary of TorStar Corporation and his columns were amongst the top read every year as ranked by the editorial team. He was a political commentator for Bell Media Inc. and has appeared regularly on Newstalk 1290 CJBK radio and CTV News in London. He was also Chair of the City of London’s Transportation Advisory Committee at a time when the City was planning a $500 million investment to implement Bus Rapid Transit. The project is part of the City’s 2030 Transportation Masterplan which is currently being implemented. Amir was the Executive Director of the London Institute, an organization that in partnership with Farhi Holdings Corporation, TechAlliance and London’s Small Business Centre, has planned a $31.5 million entrepreneurship centre, (180,000 square feet) the largest in Southwestern Ontario. The entrepreneurship centre’s services will be built around TechAlliance (Regional Innovation Centre) and the London Small Business Centre, who will both be moving into the building’ first floor to provide entrepreneurs with one-stop access to supports, services, and workshops. TechAlliance will house its Immersive Digital Experiences Accelerator (IDEA) providing incubation and acceleration for the next generation of local video game developers and BURST for high-potential medical technology startups and scale-ups that will position London as a focal point for life sciences innovation. BURST provides intensive support to 30 companies, including approximately $3 million in cash and in-kind support. Amir was also a Co-founder of FillSpaces Technologies Inc., which was a recipient of Ontario Centre of Excellence funding for its artificial intelligence and machine learning applications to its sales verticals and marketing channels. The company was funded by Western University’s business incubator (Propel) and accelerator. Amir has a Bachelor of Arts in Political Science from Western University. During his time at Western University, Amir founded the King’s University College Undergraduate Research Journal, a peer-reviewed publication by faculty showcasing four of the top research papers by students.
Carmelo Marrelli, CFO Carmelo Marrelli, also known as Carm, is the principal of Marrelli Support Services Inc., a firm that has delivers accounting and regulatory compliance services to listed companies on the Toronto Stock Exchange (TSX), TSX Venture Exchange (TSX-V) and the Canadian Securities Exchange (CSE), as well as non-listed companies. In addition, Carm is affiliated with DSA Corporate Services Inc., a firm providing corporate secretarial and regulatory filing services to the junior capital market in Canada.
Enrico Schläpfer, VP of Global Sales Being Swiss, it is without question that Enrico is a winter sports enthusiast. He has learned there is no such thing as “I can’t” by implementing winter snow sport in the paraplegic and mentally handicapped community. As a result, he brings forward the same mentality “nothing is impossible” to his business protocol. He is a seasoned brand development, sales and marketing professional with over 20 years experience in multiple industries. His exposure to various business cultures, widely divergent professionals and his fluency in 5 languages ensures his comfort level in global sales. Before devoting his work full-time to dynaCERT Inc. Enrico has had key sales positions in prestigious companies such as Nestle, Traxdata and Targus. In addition, he has served as Sales director and COO in WorldConnect in which he was a business partner.
Khoa Tran, Director of Finance Khoa Tran has over 20 years of financial reporting and accounting experience. This includes over 15 years in management positions in world class global businesses for manufacturing and service environments. Mr. Tran was previously the Director of Finance for a mid-sized manufacturing company and Controller for various mid-sized and Fortune 500 automotive and manufacturing companies with international offices. A driven finance leader, his major focus has been on operational optimization and efficiencies through lean methodologies and best practices. Mr. Tran has been volunteering as Treasurer for a religious organization in GTA for the last 18 years, being responsible for finances and planning.
Juergen Hoer, Operations Manager dynaCERT GmbH A global executive with more than 20 years of experience in the consumer products industry, Juergen has held roles with responsibility for national and international sales and marketing, expansion, strategy and cost management. Most recently Juergen served as CEO at CaseBroker, where he led worldwide sales, development and production in China, and as Sales Director, OEM for World Connect, where he developed and set up the sales team, as well as oversaw the implementation of factories in China. Past positions also include his role as Senior Sales Manager, EMEA for DICOTA with responsibility for the retail sales team, distribution, OEMs, e-commerce and direct mail order.
Gurjant Singh, R&D and Product Development Manager Gurjant Singh has a strong background in Mechanical Engineering. He graduated from the University of New Brunswick with a Masters in Mechanical Engineering. Mr. Singh has worked for two large corporations as a Project Administrator including International Tractors Limited (Sonalika), where he gained valuable experience in production, Quality Assurance and Six Sigma. During his studies, Mr. Singh led a group of Engineering students who worked on an energy project to generate electricity from friction. In addition, Mr. Singh worked on Carbon Footprint projects while pursuing his Masters degree. Some other projects include vibrational analysis of tractor engine, industrial lifting hooks and electro chemical micro-machining.
Rachael Deacon, Sr. Buyer Rachael Deacon has a strong background in Administration and Sales. Her experience includes over nine years in Sales, Marketing, Branding, Administration, Operations and Project Management. Rachael has worked for industry leading companies including Safety Net Security/Domcor, Maple Tree Construction Ltd. and Home Depot. While at Safety Net Security, Rachael successfully led key projects, created and implemented strategic planning procedures and applied branding discipline. As a Sales Manager at Maple Tree Construction Company, she embodied the company culture and maintained high standards of client satisfaction.
David Bridge, Technical Advisor David Bridge is an innovative and high-performing professional with extensive background managing Engineering and Technology operations. He is an accomplished leader with extensive knowledge of restructuring and streamlining Engineering & IT to increase efficiency and to reduce cost. He has extensive knowledge of hardware and software design. David has held senior technology positions at AMD, RBC, Virgin Mobile and at Blackberry. In addition, he has successfully launched 2 privately held start-ups. As a senior Technology leader, he helped launch Virgin Mobile in Canada helping it to expand from a start-up to a key competitor in the Telecommunications sector. In his position at Blackberry as a Director of Infrastructure, Architecture and Engineering, he led an international team of engineers through the product development lifecycle and facilitated product launch and ongoing client support.
------ ------ ------ ------ ------ ------- ------- ------ ------
Note: This list is not intended to be a complete overview of dynaCERT Inc. or a complete listing of dynaCERT's projects. Technology MarketWatch urges the reader to contact the subject company and has identified the following sources for information:
For more information contact dynaCERT's head office at: Ph (416).766-9691
Company's web site: www.dynacert.com SEDAR Filings: URL
|
Welcome to Technology Market Watch Journal
Technology MarketWatch provides insight into growing and highly prospective technology companies, many which are so often overlooked/flying under the radar, and can provide exceptional potential to richly reward investors. The companies we select offer outstanding prospects and experienced management.
|
|
Content found herein is not investment advice see Terms of Use, Disclosure & Disclaimer. This is a journalistic article and the author is not a registered securities advisor, and opinions expressed should not be considered as investment advice to buy or sell securities, but rather journalistic opinion only. Technical terms used by the writer may be used/expressed in simplified layman terms and should not be relied upon as appropriate for making investment decisions unless the reader contacts the company directly for independent verification.