RE:Funnelling Money out of the Company? To make matters worse, Dyna only press released about Galaxy Power after a lot of shareholder outrage. And they failed to mentioned in the press release they paid $250k for their 20% equity stake, not that they loaned money to a separate related company. Once again, failure to disclose. And of course they would not want these facts to be known.
from the press release:
"In consideration of the collaboration of dynaCERT’s support and industry know-how, dynaCERT International Strategic Holdings Inc. ("DISH"), a wholly owned subsidiary of dynaCERT, has been granted 20% of Galaxy Power’s equity, thereby enabling dynaCERT and DISH to benefit and participate in the possible growth and eventual commercialization of new originations of Canadian proprietary Clean Technology with no future commitments by dynaCERT nor DISH.
WealthBuilder99 wrote:
Was digging through their previous financials again. Found several rather odd things.
First is, the company leant $340k to Jean-Pierre at 0% interest. It coincided with an out-of-the-money option exercise which no logical person would do (unless of course its free money). He then immediately sold these at a loss, so until this loan is paid back he has free money from the company at the expense to shareholders (dilution) Here are the transactions:
| Filed 2021-05-31 16:49 Tx date 2021-02-23 | $DYA
dynaCERT Inc. (formerly Dynamic Fuel Systems Inc.) | Colin, Jean-Pierre 4 - Director of Issuer Direct Ownership | Common Shares 10 - Acquisition or disposition in the public market | $-284,750
-425,000 vol
$0.67 each | 0 | |
| Filed 2021-05-31 16:49 Tx date 2021-02-23 | $DYA
dynaCERT Inc. (formerly Dynamic Fuel Systems Inc.) | Colin, Jean-Pierre 4 - Director of Issuer Direct Ownership | Common Shares 51 - Exercise of options | $340,000
+425,000 vol
$0.80 each | 425,000 |
Secondly, this one is worse. They set up this new company Galaxy Power as everyone here should be aware (which doesn't look good at all), then they bought 20% of their own new company with shareholder money. $250k to be exact. Then they lent it $150k, probably to pay their own salaries?
From the MD&A:
"19. Subsequent event
In July 2 021, the Company a cquired 20% of the shares of Galaxy P ower Inc. ("Galaxy P ower"), a private Canadian
corporation for $250,000. The Company a lso advanced $150,000 as a subordinated note receivable to Galaxy
Placements Inc., which bears interest at 10% per annum and matures on December 31, 2023."
The more one digs, the worse it gets with these guys. They are not shareholder-friendly, lying through the countless false and misleading statements and many transactions for their own benefit at the expense of shareholders. Disgraceful.