MEMPHIS, Tenn., Aug. 6, 2012 (GLOBE NEWSWIRE) -- Dynamic Energy Alliance Corporation (OTCQB:DEAC) today announced that, as part of an ongoing process of converting pre-fiscal year 2012 creditors to equity participants, it had negotiated an amendment to an agreement with Key Services, Inc. under which the Company will issue to Key a total of 609,315 restricted (Rule 144) Common shares to compensate for aggregate fees totaling $121,863.01 which had accrued since July 1, 2011. This will remove the accrued Key liability from the Company's Balance Sheet. Key also agreed to a lock-up agreement which would extend by 12 months the normal six month lock-up period for these shares.
The Company also noted that the original Key Services contract had a five-year term at a rate of $20,000 per month. Key's acceptance of the amended terms terminates this continuing obligation effective July 1, 2012, saving the Company more than $1,000,0000 in future fees which would have been payable over the remaining four years of the contract.
"We appreciate Key Services' past assistance in identifying potential sites for our Green Energy Campuses, and we are pleased they will continue to participate as shareholders in the continuing evolution of our Company," stated Charles R. Cronin, Jr., Chairman. "We believe that the opportunity presented by our planned integration of Pyrolytic technologies is an attractive element that has helped encourage creditors to convert into equity stakes in the Company's future."
As previously announced, the Company had negotiated and transacted the conversion of more than $1,146,565 of debt into equity by the issuance of an aggregate 7,732,824 shares of Series A Convertible Preferred stock to certain directors and officers, and had converted additional debt of $271,800 associated with Dynamic Energy Development Corp., subsidiary, into 1,494,909 restricted DEAC Common shares.
Dynamic Energy Alliance recently announced a definitive agreement to acquire catalyst and reactor technologies related to the recovery of high value organics from the Pyrolytic processing of scrap tires, and also announced that a site in Ennis, Texas had been secured for its use and probable purchase.
The Company filed a Current Report on Form 8-K with the Securities and Exchange Commission on July 31, 2012 to disclose, among other things, the Company's entrance into the agreement with Key described herein. The Company filed a Form 10-K on April 16, 2012 (and as amended on July 26, 2012) and a Form 8-K on January 6, 2012, all of which disclose, among other things, the Company's entrance into the past debt conversion transactions referenced herein.
About Dynamic Energy Alliance Corporation
Dynamic Energy Alliance Corporation (DEAC), www.dynamicenergyalliance.com, is a development stage energy and recycling focused on identifying, combining and enhancing e existing technologies with proprietary recoverable production and finishing processes to produce synthetic oil, carbon black, gas, and carbon steel from waste feedstock. This process is expected to be accomplished with limited residual waste product and significant reductions in greenhouse gases compared to traditional processing. To maximize this opportunity, the Company has developed a scalable, commercial development strategy to build "Energy Campuses" with low operational costs and long-term, recurring revenues.
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Forward-Looking Safe Harbor Statement:
This press release contains forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. By their nature, forward-looking statements and forecasts involve risks and uncertainties because they relate to events and depend on circumstances that will occur in the near future. Forward-looking statements speak only as of the date they are made, are based on various underlying assumptions and current expectations about the future. We caution readers that any forward-looking statements are not guarantees of future performance and that actual results could differ materially from those contained or implied in the forward-looking statements. Such forward-looking statements include, but are not limited to, statements about the transactions described herein, future financial and operating results, the combined company's plans, objectives, expectations and intentions and other statements that are not historical facts. In some cases, you may identify forward-looking statements by words such as "may," "should," "plan," "intend," "potential," "continue," "believe," "expect," "predict," "anticipate" and "estimate," the negative of these words or other comparable words. These statements are only predictions. One should not place undue reliance on these forward-looking statements. The forward-looking statements are qualified by their terms and/or important factors, many of which are outside the Company's control, involve a number of risks, uncertainties and other factors that could cause actual results and events to differ materially from the statements made. The forward-looking statements are based on the Management's beliefs, assumptions and expectations about the Company's future performance and the future performance of its subsidiaries, taking into account information currently available to the Company. These beliefs, assumptions and expectations can change as a result of many possible events or factors not all of which are known to the Company. The Company will update this forward-looking information only to the extent required under applicable securities laws. Neither the Company nor any other person assumes responsibility for the accuracy or completeness of these forward-looking statements.
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