Dominovas Energy Corp. (OTCMKTS:DNRG) Jumps Once More
Dominovas Energy Corp. (OTCMKTS:DNRG) spiked 13.38% up the charts after yet another burst of reviews that praised it hit the web. But will its ascent last?
Stock commenters and investors alike seem to be very excited about the Power Africa project that DNRG is involved in. True, this project presents an opportunity for the company to achieve something significant in the future. The only problem is, that there is no real evidence that it can do so, even with this golden opportunity present.
These past few days, many of the company’s supporters paid close attention to DNRG‘s SEC profile, waiting for the all important 10-Q that would announce its results for Q2, 2015. Well, now that it has hit the web after yesterday’s session, some people may end up being disappointed:
- Cash – $9 thousand
- Current Assets – $24 thousand
- Current Liabilities – $1.3 million
- NO REVENUES
- Convertible debt – $427 thousand
- Loss on debt conversion – $340
- Net loss – $1.3 million
A recap of DNRG‘s activities all through May 2015 fails to impress – but still provides investors with invaluable information, and hints at a potential pitfall they should be very wary of.
Of course, we’re talking about that $427 thousand worth of convertible debt owned by Kodiak Capital Group and LG Capital Funding, LLC that may at any time be converted “into shares of the Company’s common stock, at a conversion price for each share equal to the lowest closing bid price for the common stock for the thirty trading days ending on the trading day immediately before the conversion date multiplied by 50% at any time after April 28, 2015.”
Naturally, there is no way to know how much of that debt is still due and how much has already been converted into shares at $0.0022 and dumped on the market. The ticker has been dragged down on heavy volume in spite of good news on multiple occasions in the last couple of weeks, but it is difficult to gauge whether that happened because of dissipating hype or dumping.
Still, investors should be wary of the possibility of the remainder of DNRG‘s debt getting dumped on the market in the next few days, as the note holders will probably not get a more profitable opportunity to cash in on it any time soon.