It's a shame that DynaMotive Energy Systems Corp. of Vancouver is traded over the counter, that wild west of the trading world that serious investors shun. The company is trading in decent volumes and its share price has soared more than 50 per cent in less than a month. The stock rose about 5 per cent today to close at 93 cents, and appears poised to rise above penny-stock territory. Today's gain was related to an announcement that DynaMotive and Mitsubishi Canada Ltd. have entered into a "wide-ranging Memorandum of Understanding which expresses their mutual intentions to develop definitive agreements for marketing and distribution of DynaMotive's patented technology in Canada and internationally."

Quite the mouthful.

Now, an MoU to develop agreements isn't a handshake in blood, but it's a sign that a major, credible player like Mitsubishi has a strong interest in DynaMotive's pyrolysis technology. (Also click here for a recent post on the company).

According to a press release, the two companies will explore collaboration with respect to international trade, market development, sales and distribution of DynaMotive's technology and products. Mitsubishi also intends to assist DynaMotive in developing financial models to facilitate product sales, and the two companies will be looking at how to work together on equipment fabrication, distribution and leasing.

Also open to discussion is Mitsubishi potentially making an investment in DynaMotive.

This is encouraging news for the company. Whether it goes anywhere is another issue, keeping in mind that Mitsubishi is a massive international company with its hands in many jars of honey around the world. DynaMotive will have to present a compelling business proposition for the Japanese giant to take this relationship to a higher, more meaningful level.

In the meantime, DynaMotive needs to get off the OTC bulletin boards and start trading on a real exchange.