Dominovas Energy Corp. (OTCMKTS:DNRG) Crashes Horribly

Last week, Dominovas Energy Corp. (OTCMKTS:DNRG)’s run up the charts was nothing short of miraculous. However, it was all too clear that its gains wouldn’t last – and they didn’t.

Unfortunately for investors that harbored high hopes for DNRG‘s continued ascent, the magic surrounding the ticker ran out about an hour and a half before the clock actually struck twelve, and it was all downhill from there. By the end of the session the ticker had fallen 46.02% and was approaching penny land once more, on a dollar volume of almost $7 million.

This turn of events should not have come as a surprise to anyone that has done any amount of due diligence on the company. As we’ve mentioned before, DNRG displayed an alarming array of red flags that made retention of gained market value unlikely. Its latest financial report looked positively dreadful:

• NO CASH ON HAND!
• Prepaids – $15 thousand
• Convertible debt – $330 thousand
• Current Liabilities – $1.1 million
• Net loss – $228 thousand

Further red flags can be found in said report’s section 5, which concerns convertible debt. This section is so badly written that it can easily be called incomprehensible. What does become clear once you begin reading it is that presently, a note holder called Kodiak Capital Group can convert $330 thousand into shares at prices $0.0044 or $0.0022.

Naturally, there is no means to discern if the conversion and subsequent dumping of copious amounts of such shares on the market is the reason for DNRG‘s fall on Friday, but at this point that possibility sounds very probable.

On the other hand, said slide may have been caused by the fact that the hype bubble that was the only thing keeping DNRG afloat burst when the investors’ heads cooled somewhat.

Or it could have been both of those things.

In any case – the ticker’s behavior and the company’s financial reports are indicative enough of DNRG‘s nature and the danger said nature represents. Investors should take note of both as they make up their mind about whether or not to commit to DNRG stock.

Another company that managed to rise on news last week, only to fall flat on its face during Friday’s session is Progressive Care Inc. (OTCMKTS:RXMD).