MEMPHIS, Tenn., April 9, 2012 (GLOBE NEWSWIRE) -- Dynamic Energy Alliance Corporation (OTCQB:DEAC) today announced that its wholly owned development subsidiary, Dynamic Energy Development Corp. (DEDC), has entered into a non-binding Term Sheet contemplating the acquisition of an exclusive worldwide license to use certain high-output Pyrolytic Augmentation technologies, which includes a series of specialized chemical compounds and related technologies that management believes will substantially increase future production output from waste tires converted into synthetic oil and carbon products. These license rights extend to pending patents, and encompass DEAC's use of the technology for its own products and for plant design, and permit DEAC's conveyance of sub license rights to DEAC's future licensees, joint venture partners and others, for its Pyrol Black Energy Campus structure. In exchange for the license, its grantor R.F.B., LLC, Prairie Village, Kansas, is to be issued shares of DEAC restricted Common stock and receive future royalties based on DEAC's output utilizing the assigned technology.
When combined within a pyrolysis plant process, the compounds are intended to enable decomposition of the tires to occur at lower temperatures — which would be a critical energy-saving benefit. A reactor technology included in the license allows DEAC to recover additional high value organic compounds during tire processing, which management believes will increase the volume of oil and carbon black the Company will be able to extract from the tires. The technology's versatility is also an advantage for DEAC, as it can be utilized in a variety of types of pyrolysis equipment, regardless of the power source.
"The acquisition of the exclusive license to use the R.F.B. intellectual property and patent pending technology will be a major step for DEAC because it improves our planned waste tire pyrolysis by changing the chemical reaction that's part of the de-vulcanization process used to convert the tires' rubber, and other waste rubber, into valuable products," stated Dr. Earl Beaver, Chief Technology Officer of Dynamic Energy Alliance Corporation. "The intellectual property includes a class of catalysts new to this industry but with exciting potential to improve the economics of waste tire processing. The lower temperature enabled through the catalysts should allow for lower energy costs, lower maintenance costs and higher outputs of the most valuable liquid products and carbon black from tire pyrolysis. It is also important to note that through DEDC, these catalysts can be licensed by others to improve the outputs of several different groups of equipment manufacturers."
As additional consideration, R.F.B. shall also receive a revenue share of the high-value organic compounds produced by DEDC and/or its assigns, utilizing the R.F.B. catalysts(s) and reactor technology; and (b) a percentage of the net profits realized from the recovery of energy products recovered from oil sands or tar sands. The anticipated term of the license shall be the greater of (i) twenty five (25) years and (ii) twenty (20) years from the notice of allowance relative to the Application. The specific compensation terms of the license are based on trade secrets that are considered confidential and therefore are not being released.
The terms and conditions of the proposed transaction are contingent upon preparation and execution of a "Definitive Agreement" to be executed on or before April 30, 2012, with a subsequent date of closing (the "Closing Date"), to be mutually agreed to by RFB and DEDC. To date, the parties have not executed a Definitive Agreement and there is no guarantee or assurance that the parties will execute a Definitive Agreement by the Closing Date. The transaction is expected to close on April 30, 2012.
DEAC previously announced that a development subsidiary, Dynamic Energy Development Corp, (DEDC) entered into a definitive agreement to acquire a site in Ennis, Texas upon which the Company plans to build its first Energy Campus. The Company anticipates that the technologies to be acquired through the R.F.B License will be available for use in the development and operation of this new Energy Campus, provided additional working capital is obtained to carry forward the Energy Campus project
The Company filed a Current Report on Form 8-k with the Securities and Exchange Commission on April 6, 2012 to disclose, among other things, the Company's entrance into the agreement described herein and the terms and conditions required for closing the contemplated transaction.
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 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. The Company's management anticipates breaking ground on its next generation plant in summer 2012.
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