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Oshawa, Ontario--(Newsfile Corp. - May 3, 2012) - Dynamic Fuel Systems Inc. (TSXV: DYA) ("Dynamic" or the "Corporation") is pleased to make the following announcements:
Warrant Exercise
The Corporation announces that it has been advised that holders of 4,586,100 warrants in the Corporation have exercised these warrants at an exercise price of $0.15 per warrant for total proceeds of $687,915.
Use of Proceeds
The net proceeds received by the Corporation from the sale of these units will be used for general working capital purposes.
Loan Agreement
The Corporation is pleased to announce that it has reached a loan agreement in principal with a major shareholder and Director and Officer of the Corporation. The term loan is in the amount of $1,000,000, for a period of one year, with interest at 12.5%; with 50% of the yearly interest payable in advance ($62,500), and the remaining interest payable monthly in arrears in the amount of $5,208.33.
Use of Proceeds
The net proceeds received by the Corporation from the term loan units will be used to repay the Director Loan.
About Dynamic Fuel Systems Inc.
Dynamic Fuel Systems Inc. is an Oshawa, Ontario; Canada based energy Sector Company engaged in the sales & marketing, manufacture, distribution, installation and support of a transportable hydrogen generator aftermarket product targeted for use in the heavy tractor trailer industry.
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.
For further information, please contact:
Mr. Grove Bennett
President & Corporate Secretary
Dynamic Fuel Systems Inc.
1288 Ritson Road Nth, Suite 385
Oshawa, Ontario L1G 8B2
905-831-2440 x 613
www.dynamicfuel.com