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Research Comment english - dynaCERT Inc. - 09.09.25

dynaCERT Secures Mexico and Texas Expansion with Hydrofuel Order and Distribution Deal

dynaCERT has entered a period of steadily improving momentum that matches the investment case laid out earlier this year. The order from Hydrofuel Technologies for 100 HydraGEN units, with 25 units already in delivery, is particularly noteworthy because it establishes an entry into Mexico, which is one of the largest diesel truck markets globally. By also granting Hydrofuel distribution rights for both Mexico and Texas, dynaCERT has effectively secured a sales partner in a logistics corridor that accounts for nearly half of all US-Mexico cross border truck trade. This transaction provides more than just incremental revenue from the first 100 units. It sets up a framework for scaling orders, broadening relationships with fleets, and extending the installed base of HydraGEN technology in one of the most strategically relevant regions for heavy duty trucking. Such developments directly align with the initial coverage assumption that early footholds through distribution partners and reference projects could accelerate adoption and lead to more meaningful sales volumes in 2025 and beyond.

At the same time, dynaCERT has demonstrated progress in Europe where the Port of Rochefort Tonnay Charente in France became the first port to deploy HydraGEN technology on its cranes. After several months of testing, the port confirmed significant improvements in its greenhouse gas footprint and committed to installing the technology across all five of its cranes by the end of 2025. The decision has been supported financially by the Nouvelle Aquitaine regional government, underlining both political and economic backing for such clean technology solutions. The fact that a European port authority has validated the technology in a highly visible industrial setting enhances dynaCERT’s credibility and provides a replicable model for other ports, logistics hubs, and heavy equipment operators across Europe. This marks another practical example of what the initial coverage anticipated: the conversion of pilots into broader deployments that extend HydraGEN adoption into sectors beyond long haul trucking.

Financially, the company has bolstered its position with a fully subscribed five million Canadian dollar financing completed in July at fifteen cents per unit. This capital raise, which included freely tradable warrants, provides immediate liquidity and ensures that resources are available to finance sales in mining, oil and gas, transportation, and power generation. This financing followed earlier placements earlier in the year and demonstrates that investor confidence remains intact, even in a challenging capital markets environment. The strengthened balance sheet provides working capital support to scale operations, expand global sales efforts, and secure inventory to meet growing demand. The capital raise also reinforces the view from the initial coverage that while liquidity had historically been a constraint, recent financing success alleviates this pressure and enables the company to execute on its growth plans.
The governance structure has also been enhanced. The appointment of John Amodeo as a director adds over four decades of financial and strategic expertise, with particular experience in the metals and steel industry and in structuring international growth strategies. This complements the existing board and management team, which combines deep experience in the automotive, technology, and capital markets sectors. The transition of long serving director Wayne Hoffman into an advisory role ensures continuity while bringing fresh perspectives to the board. These developments underline the company’s commitment to strengthening its governance and aligning board expertise with its growth strategy.

When put together, these events form a consistent picture. dynaCERT is converting early stage validation into real commercial deployments, is broadening its geographic footprint into Mexico, Texas, and Europe, is securing the capital required to sustain global sales expansion, and is strengthening its governance framework in line with its growth ambitions.

For investors, the recent news confirms that dynaCERT is delivering on its strategy and provides additional evidence that the path to scale is achievable. The company remains well positioned to capture a growing share of the global push for emission reduction technologies in diesel applications, and the combination of short term hardware growth and long term carbon credit potential underpins a compelling equity story. We therefore reaffirm our Buy rating and our target price of 0.75 CAD per share