Not too many comments about the AGM here I wonder why.
Met Rich and a few others with similar stories the longs can share about this company.
As stated on stockhouse this is starting over again.
Jerry gave his rambling speech from the heart!!! (why wouldn't he be honest and say I screwed up, he would get more respect. Than to blame it on the previous management etc)
Wayne likes Jerry for what ever reason, so I don't want to second guess his decision there. I guess everyone has a role to play.
Wayne tried to outline a plan that was lacking in Action steps, which he admits he is working on. Says he's trying to get the company focused on a few things and not in many different areas. Makes sense, do few things well and move on.
Wayne says finance companies want to know 3 things
1) Cost - of the product & pay back.
2) What are the documented fuel saving & emission reductions. Government testing results.
3) Management team. Who are you and can you execute this plan.
for each of the points, here are my answers:
1) Product too costly. Want to be green make the shell from a renewable source, recycled plastic, (plastic bottles tonnes of those around not decaying for thousands of years) Buyer should be able to realize a one year payback and have confidence this product would be able to pay them for 4 more years after without too much maintenance. Money in the bank.
2) Wayne says they are working with the Canadian, Ontario and California governments. I don't think they are even up to bat yet, so that could be awhile.
3) In the process of putting the team together, which have street cred. Wayne could not provide us with a prospectus or business plan. He said it was a work in progress.
So you can see with the above problems they cannot go ask someone for money.
They are going to try to move the inventory even if they sell it at below cost. I don't think it really matters if it's below cost as there is a depreciation value ascribed to the inventory sitting there not sold every year. So if they have claimed 50 % depreciation for however how long it's been sitting there, one would think they could at least, sell it for 60-70% of their cost to get some funds generated, from the $3-4 million sitting there. Generating that cash instead of private placements would stop the dilution of our shares.
The building is 50% leased and a reduction of $30-45,000 per month off the burn rate. Which is approx $620,000 a quarter. Goal is have 25% of the building dynamic occupied.
They were able to refinance the building thanks to Dave Sikkema, they have an estimated $800,000 in equity in the building, which will help offset some costs and help them move forward again without doing a private placement.
Brought a few new guys on board.
Grove Bennent : from hydrive working in marketing in Canada.
Chad Parr : will market in the U.S. Both Wayne and Jerry couldn't seem to say enough good things about this guy. He seems to know everyone.
The above two guys will be the marketing specialist for the company.
They have an I.T. guy who is working on a website.
Jerry in his ramblings made mention Dynamic was an intellectual company. So I would take that to mean that they will concentrate on developing new products and getting them distributed through established manufacturers and collect royalties.
Legal proceedings: There was a dispute between Jerry and Richpickin in reference to amount of lawsuits outstanding. Jerry can only remember one and Rich says he knows of at least 3. I don't know Rich very well at all, so I don't think he had to lie. I know of 2 lawsuits and the fact you can search the Federal court system and find them yourself is quite laughable Jerry would not know, who his company is suing and who is suing the company. Especially when you pay out over $400,000 in one quarter in legal fee's.
When he says stuff like this, it makes me upset he is still around, as he's not someone I want to hear or trust. He says too much of nothing.
Jerry did say the one with Paul Bearns (unsure of the spelling of his last name) they are trying to resolve.
They will be re branding of the product. It won't be called Jetstar, unknown what it will be called.
Wayne said his goal is to help dynamic be a small profitable business.
Would be good if that could happen by q2. I doubt it, unless Pepsi sticks in a big order.
So here we go again, waiting patiently.
So if anyone else has any views or comments about the meeting please share.
GLTA Rogers.
