Consensus Appoints Director to Dynamotive’s Board and Converts Ownership in Biomass Company to Common Shares of Dynamotive
August 2, 2007
Dynamotive Energy Systems Corporation (OTCBB:DYMTF) and Consensus (“Consensus”) announced today the appointment of Mr. Wayne Keast, Chief Executive, Consensus Environment, to Dynamotive’s Board of Directors concurrently with the conversion of Consensus’s 49% equity ownership in Dynamotive Biomass Resource Corporation, a subsidiary of Dynamotive, into ownership of common shares of Dynamotive.
The move signals a strengthening of the relationship between the Companies and the desire by Consensus to take a more active role in the development of Dynamotive.
The conversion of Consensus’s ownership in the biomass joint venture into common shares in the parent Company was agreed given the potential for conflict of interest in this activity and allows for the assets to be developed under the Dynamotive parent Company umbrella.
The biomass development company was set up to develop biomass resources worldwide and has current projects under development in EU, Canada, US and Latin America. Under the agreement, $2,000,000 invested by Consensus would be converted to Dynamotive’s common restricted stock at US $1 per share (market at the time of agreement). The subsidiary has cash of $ 1.4 million, holds certain project development rights and has a $330,000 convertible loan receivable related to operations in the Ukraine with Rika BioFuels.
Commenting on the appointment of a Director to Dynamotive’s Board, Mr. Vincent Tchenguiz, Chairman of Consensus, said, “We have long been a supporter of Dynamotive financially and strategically and have seen the Company grow to the stage where our considerable reach, resources and financial know-how can make a significant difference in the Company’s future. Consensus know-how can be pivotal in leveraging Dynamotive’s potential. I would like to congratulate Dynamotive for their achievements to date and, in particular, Mr. Kingston whose vision and commitment has allowed the Company to reach this stage.”
“Mr. Wayne Keast brings considerable experience and know-how and is a key member of Consensus; by appointing him to Dynamotive’s Board we will ensure seamless cooperation between the Companies. I also believe that converting our ownership in Dynamotive Biomass Resource Corporation into ownership into the parent Company is the right move given our close involvement in Dynamotive.”
Mr. Richard Lin, Chairman of Dynamotive, welcomed the appointment of Mr. Wayne Keast to Dynamotive’s Board and thanked Mr. Vincent Tchenguiz for his support of the Company. Mr. Lin added, “Consensus has been a strong supporter of Dynamotive and has seen the Company grow steadily over the years to the point where its market potential reached the threshold for closer involvement. We appreciate the forward outlook and vision of Mr. Vincent Tchenguiz and his organization. I welcome the appointment of Mr. Keast to our Board and look forward to working with him at Board level.”