Dynamic Energy Alliance Corporation's Development Subsidiary Secures First Refusal Rights and Option to Purchase a 10-Acre Site Near Dallas for Green Energy Campus
The property, which contains structures aggregating 32,000 sq. ft., is permitted by the Texas Commission on Environmental Quality as a scrap tire collection and processing operation. The location is in close proximity to strategic infrastructure and logistics resources that would enhance the Company's ability to collect and distribute raw and finished materials.
The site was originally optioned by DEDC in March 2012. In June 2012, DEDC assigned its option rights to IWSI PS Plan, an entity affiliated with DEAC's Chairman Charles R. Cronin, Jr. IWSI subsequently exercised the option and acquired the facility on June 4, 2012.
Mr. Cronin stated: "We've arrived at a fair and equitable way to safeguard this important property for the Company's use as we pursue our goal of developing a state-of-the-art energy campus. DEAC's energy campus will combine proven tire pyrolysis processes and other proprietary technologies to optimize outputs of high value organic compounds, synthetic oils, and carbon black; thus executing our vision to convert abandoned tires into recoverable products."
DEAC's purchase option extends through June 2014, with one renewal. The option provides for an exercise price of $1,032,500 (the original price paid by IWSI), plus other considerations that include facility usage fees of $10,000 per month (which accrues until a closing), and quarterly option payments equal to $15,000 per quarter (to be credited against the purchase price if option is exercised) to keep the option current, along with other consideration adjustments to be determined at closing.
Additional information is provided in the Company's current report on Form 8-K with Securities and Exchange Commission on October 2, 2012. The description of the terms of the option is qualified in its entirety by reference to the Option Agreement, which is attached as an Exhibit to the Company's Form 8-K filing.
About Dynamic Energy Alliance Corporation
Dynamic Energy Alliance Corporation (DEAC), www.dynamicenergyalliance.com, is a development stage energy and recycling company focused on identifying, combining and enhancing 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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