FORM 6-K
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
-----------------
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 or 15d-16 OF
THE SECURITIES EXCHANGE ACT OF 1934
FOR May 25, 2007
DYNAMOTIVE ENERGY SYSTEMS CORPORATION
(Exact name of Registrant as specified in its charter)
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Suite 230-1700 West 75th Avenue
Vancouver, BC
Canada V6P 6G2
(604) 267-6000
(Address of principal executive offices)
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[Indicate by check mark whether the registrant files or will file
annual reports under cover Form 20-F or Form 40-F:]
FORM 20-F X FORM 40-F
--- ---
[Indicate by check mark whether the registrant by furnishing the
information contained in this form is also thereby furnishing the
information to the Commission pursuant to rule 12g3-2(b) under the
Securities Exchange Act of 1934.]
YES NO X
--- ---
[If Yes is marked, indicate below the file number assigned to
the registrant in connection with Rule 12g3-2(b):] Not applicable
FORM 51-102F3
MATERIAL CHANGE REPORT
Item 1 Name and Address of Company
---------------------------
DynaMotive Energy Systems Corporation (the "Issuer")
230-1700 West 75th Avenue
Vancouver, BC V6P 6G2
Tel. (604) 267-6013
Item 2 Date of Material Change
-----------------------
May 24, 2007
Item 3 News Release
------------
Issued May 24, 2007 and disseminated via Business Wire.
Item 4 Summary of Material Change
--------------------------
VANCOUVER, CANADA, May 24, 2007 - Dynamotive Energy Systems
Corporation ("Dynamotive") (OTCBB: DYMTF), a leader in biomass-
to-biofuel technology, today reported its first quarter 2007
results. For the three months ended March 31, 2007, the company
reported a loss of $3.2 million or $0.02 per share, compared with
a loss of $3.3 million or $0.03 a share for the same period a
year earlier. When stock-based compensation is excluded,
Dynamotive's Q1 2007 net loss was $2.4 million, compared with
$2.0 million during 2006. The slightly lower loss for the quarter
is due mainly to the lower stock based compensation, largely
offset by increased activity in most business areas. (All figures
are in US dollars.) As at March 31, 2007, the company had cash
and cash equivalents of $4.4 million, compared to $11.7 million
at March 31, 2006. The lower cash level is mainly due to capital
expenditures for building the new, modular intermediate BioOil(R)
production plant at Guelph, Ontario, and upgrading the
established West Lorne, Ontario, facility.
Item 5 Full Description of Material Change
-----------------------------------
5.1 Full Description of Material Change
VANCOUVER, CANADA, May 24, 2007 - Dynamotive Energy Systems
Corporation ("Dynamotive") (OTCBB: DYMTF), a leader in biomass-
to-biofuel technology, today reported its first quarter 2007
results.
For the three months ended March 31, 2007, the company reported a
loss of $3.2 million or $0.02 per share, compared with a loss of
$3.3 million or $0.03 a share for the same period a year earlier.
When stock-based compensation is excluded, Dynamotive's Q1 2007
net loss was $2.4 million, compared with $2.0 million during
2006. The slightly lower loss for the quarter is due mainly to
the lower stock based compensation, largely offset by increased
activity in most business areas. (All figures are in US dollars.)
As at March 31, 2007, the company had cash and cash equivalents
of $4.4 million, compared to $11.7 million at March 31, 2006. The
lower cash level is mainly due to capital expenditures for
building the new, modular intermediate BioOil(R) production plant at
Guelph, Ontario, and upgrading the established West Lorne,
Ontario, facility.
Commenting on the company's activities during the quarter
President and CEO Andrew Kingston said: "We continued our steady
progress in the first quarter of 2007 with the commissioning of
our Guelph plant under way and work on West Lorne accelerating.
We have now completed our initial production run of intermediate-
grade biofuel - BioOil Plus - at Guelph and we expect to have
both plants operational in the third quarter; signalling full
commercial operation. Furthermore, our activities in Europe, the
U.S., Latin America and China continued at an increased pace,
with commercial project prospects in each of these markets.
"Strategically, we continue to have constructive discussions with
Mitsubishi, and we are consolidating our partnerships with
Consensus Business Group, Evolution Biofuels and Tecna.
Internally, we continue to grow our capabilities in every area of
the Dynamotive organization, and our progress can be easily
monitored through our website, which we update regularly,"
continued Kingston.
Outlook
"During the balance of 2007, we expect to achieve key milestones
with our existing project opportunities and add to them. Having
two plants in operation later this year will give us a strong
competitive advantage in the marketplace, demonstrating the
production of cellulose-based fuels at commercial levels well
ahead of our competitors. We have noted, too, that there has been
specific growing interest in fast pyrolysis in the marketplace,
as well as an increasing recognition that this technology can co-
exist and support ethanol and biodiesel operations," concluded
Kingston.
Recent Highlights for 2007.
- -Hot commissioning commenced at new Guelph plant, followed by
completion of first intermediate-grade BioOil(R) production run May 23.
- -Major equipment delivered to West Lorne site as upgrading of
plant begins
- -Dynamotive announces project for up to six biofuel plants in
Argentina, subject to financing
- -First Resources Corporation developing partnerships with First
Nations People in Canada
- -Dynamotive contracts with Ontario Power Authority for green
electricity supply from West Lorne
Summary financial results are presented as follows:
- ---------------------------------------------------
Consolidated Statements of Loss
(expressed in 000's of U.S. Dollars)
Three Months Ended
March 31,
2007 2006
$ $
- ---------------------------------------------------------------------------
EXPENSES
Marketing and business development 346 573
Research and development 894 1,021
General and administrative 2,094 1,551
Depreciation and Amortization 30 23
Interest expense - 269
Exchange (gain) loss (17) (99)
- ---------------------------------------------------------------------------
Total expenses 3,347 3,338
Other (income) and expenses (79) (40)
- ---------------------------------------------------------------------------
Loss before minority interest 3,268 3,298
Non-controlling interest (29) -
- ---------------------------------------------------------------------------
Loss for the Period 3,239 3,298
===========================================================================
Weighted average number of common shares
outstanding (in thousands) 177,602 131,906
Loss per Common share
for the period $0.02 $0.03
5.2 Disclosure for Restructuring Transactions
N/A
Item 6 Reliance on Subsection 7.1(2) or (3) of National Instrument 51-102
------------------------------------------------------------------
Not applicable
Item 7 Omitted Information
-------------------
Not applicable
Item 8 Executive Officer
-----------------
Contact: Andrew Kingston, President & CEO
Telephone: (604) 267-6013
Item 9 Date of Report
--------------
May 24, 2007
DYNAMOTIVE ENERGY SYSTEMS CORPORATION
(signed) "Andrew Kingston"
----------------
Andrew Kingston
President & CEO
DYNAMOTIVE ENERGY SYSTEMS CORPORATION News Release: May 24, 2007
DYNAMOTIVE REPORTS 1st QUARTER 2007 RESULTS
VANCOUVER, CANADA, May 24, 2007 - Dynamotive Energy Systems
Corporation ("Dynamotive") (OTCBB: DYMTF), a leader in biomass-to-
biofuel technology, today reported its first quarter 2007 results.
For the three months ended March 31, 2007, the company reported a loss
of $3.2 million or $0.02 per share, compared with a loss of $3.3
million or $0.03 a share for the same period a year earlier. When
stock-based compensation is excluded, Dynamotive's Q1 2007 net loss
was $2.4 million, compared with $2.0 million during 2006. The slightly
lower loss for the quarter is due mainly to the lower stock based
compensation, largely offset by increased activity in most business
areas. (All figures are in US dollars.)
As at March 31, 2007, the company had cash and cash equivalents of
$4.4 million, compared to $11.7 million at March 31, 2006. The lower
cash level is mainly due to capital expenditures for building the new,
modular intermediate BioOil(R) production plant at Guelph, Ontario, and
upgrading the established West Lorne, Ontario, facility.
Commenting on the company's activities during the quarter President
and CEO Andrew Kingston said: "We continued our steady progress in the
first quarter of 2007 with the commissioning of our Guelph plant under
way and work on West Lorne accelerating. We have now completed our
initial production run of intermediate-grade biofuel - BioOil Plus -
at Guelph and we expect to have both plants operational in the third
quarter; signalling full commercial operation. Furthermore, our
activities in Europe, the U.S., Latin America and China continued at
an increased pace, with commercial project prospects in each of these
markets.
"Strategically, we continue to have constructive discussions with
Mitsubishi, and we are consolidating our partnerships with Consensus
Business Group, Evolution Biofuels and Tecna. Internally, we continue
to grow our capabilities in every area of the Dynamotive organization,
and our progress can be easily monitored through our website, which we
update regularly," continued Kingston.
Outlook
"During the balance of 2007, we expect to achieve key milestones with
our existing project opportunities and add to them. Having two plants
in operation later this year will give us a strong competitive
advantage in the marketplace, demonstrating the production of
cellulose-based fuels at commercial levels well ahead of our
competitors. We have noted, too, that there has been specific growing
interest in fast pyrolysis in the marketplace, as well as an
increasing recognition that this technology can co-exist and support
ethanol and biodiesel operations," concluded Kingston.
Recent Highlights for 2007.
- -Hot commissioning commenced at new Guelph plant, followed by
completion of first intermediate-grade BioOil(R) production run May 23.
- -Major equipment delivered to West Lorne site as upgrading of plant
Begins
- -Dynamotive announces project for up to six biofuel plants in
Argentina, subject to financing
- -First Resources Corporation developing partnerships with First Nations
People in Canada
- -Dynamotive contracts with Ontario Power Authority for green
electricity supply from West Lorne
Summary Financial results are presented as follows:
- ----------------------------------------------------
Consolidated Statements of Loss
(expressed in 000's of U.S. Dollars)
Three Months Ended
March 31,
2007 2006
$ $
- ---------------------------------------------------------------------------
EXPENSES
Marketing and business development 346 573
Research and development 894 1,021
General and administrative 2,094 1,551
Depreciation and Amortization 30 23
Interest expense - 269
Exchange (gain) loss (17) (99)
- ---------------------------------------------------------------------------
Total expenses 3,347 3,338
Other (income) and expenses (79) (40)
- ---------------------------------------------------------------------------
Loss before minority interest 3,268 3,298
Non-controlling interest (29) -
- ---------------------------------------------------------------------------
Loss for the Period 3,239 3,298
===========================================================================
Weighted average number of common shares
outstanding (in thousands) 177,602 131,906
Loss per Common share
for the period $0.02 $0.03
About Dynamotive
Dynamotive Energy Systems Corporation is an energy solutions provider
headquartered in Vancouver, Canada, with offices in the USA, UK and
Argentina. Its carbon/greenhouse gas neutral fast pyrolysis technology uses
medium temperatures and oxygen-less conditions to turn dry, waste cellulosic
biomass into BioOil for power and heat generation. BioOil can be further
converted into vehicle fuels and chemicals. Construction progress at the new
Guelph plant and West Lorne's re-construction progress may be seen by viewing
photographs regularly posted on the company's website at www.dynamotive.com
Contacts:
Brian Richardson, Chief Financial Officer, 604-267-6004
Nigel Horsley, Executive Director, Communications and Investor Relations,
604-267-6028.
Nathan Neumer, Director, Communications, 604-267-6042
Switchboard (604) 267-6000
Toll Free (North America) 1-877-863-2268
Fax (604) 267-6005
Email: info@dynamotive.com
Website: www.dynamotive.com
Forward Looking Statement
- -------------------------
Statements in this news release concerning the company's business outlook or
future economic performance; including the anticipation of future plant
start-ups, partnerships, consortiums, teaming agreements, government
assistance, other anticipated cash receipts, revenues, expenses, or other
financial items; and statements concerning assumptions made or expectations
as to any future events, conditions, performance or other matters, are
"forward-looking statements". Forward-looking statements are by their nature
subject to risks, uncertainties and other factors which could cause actual
results to differ materially from those stored in such statements. Such
risks, uncertainties and factors include, but are not limited to, changes in
energy prices, availability of capital, and the Company's ability to access
capital on acceptable terms or any terms at all, changes and delays in
project development plans and schedules, customer and partner acceptance of
new projects, changes in input pricing, competing alternative energy
technologies, government policies and general economic conditions. These
risks are generally outlined in the Company's disclosure filings with the
Securities and Exchange Commission.