Source Adam Whittaker via Park Journey
TORONTO – January 31, 2022 – Dynamic Technologies Group Inc. (TSXV: DTG, OTC:ERILF) ( “Dynamic” or the “Company”) is pleased to announce that the Company’s wholly-owned co-venture subsidiary, Dynamic Entertainment Group Ltd. (“DEGL”) has acquired a 50% ownership interest in the flying theatre attraction named Sky FlyTM: Soar America located in Pigeon Forge, Tennessee (the “Flying Theatre Acquisition”).
“I am thrilled to announce that the Company now owns 50% of the Smoky Mountain Flyers attraction at The Island in Pigeon Forge. We have seen excellent attendance since opening last summer. We expect this trend to continue, even more so, now that visitors to the Smoky Mountains of Tennessee will be even more curious to visit The Best New Attraction in the Country,” stated Guy Nelson, Executive Chair and CEO.
As background, the Company’s prior News Releases dated July 2, 2019 and January 4, 2022 disclosed that on June 19, 2019, DEGL entered into an Option to Purchase Agreement with High Express Holdings Ltd. (the “Vendor”) providing DEGL with an option to acquire all of the issued and outstanding shares of High Express Holdings (US) Inc. (“High Express”). High Express owns a 50% equity interest in Smoky Mountain Flyers, LLC (“Smoky Mountain”) and Smoky Mountain owns and operates the SkyFlyTM: Soar America flying theatre attraction that won the USA Today Readers’ Choice Award for ‘Best New Attraction in the Country for 2021.
The Flying Theatre Acquisition was closed successfully today. DEGL paid the purchase price of USD$3,995,822 (the “Purchase Price”) by issuance of a promissory note (the “Note”) to the Vendor. The Note is secured by a pledge of the common shares of High Express and carries an interest rate of USD$30,000 per month (9.0% per annum) and is repayable on or before December 31, 2022.
Although the Vendor currently owns 31,116,267 common shares of Dynamic representing 19.0% of the issued and outstanding common shares of Dynamic, the Flying Theatre Acquisition was not a “related party transaction” within the meaning of TSXV Policy 5.9 or Multilateral Instrument 61-101 – Protection of Minority Security Holders In Special Transactions (“MI 61-101”). This is because the Option to Purchase Agreement was entered into on June 19, 2019, a time when the Vendor had control or direction, directly or indirectly, of securities of Dynamic carrying less than 10% of the voting rights attached to all of Dynamic’s outstanding securities and is therefore not a “related party” as defined in MI 61-101.
About Dynamic Technologies Group Inc.
Dynamic is a world leader in the design engineering, production, and commissioning of iconic, media-based attractions and ride systems for the global theme park industry and popular tourist destinations. Dynamic leverages its world class, media-based attraction products and attraction development capability on a co-venture ownership basis. The Company also applies its engineering integration and problem-solving skills on special projects in diversified industries such as alternative energy and large optical telescopes and enclosures. Dynamic’s common shares are listed on the TSX Venture Exchange under the symbol DTG. For more information about the Company, visit www.dynamictechgroup.com