Dominovas Energy Corp (OTCMKTS:DNRG) Heats Up Again
It’s been a couple of months since Dominovas Energy Corp (OTCMKTS:DNRG) skyrocketed out of the sub-penny levels. So how are the numerous shareholders created during the explosive run doing right now? Well, the peaks of more than $0.20 per share are now nothing more than a pleasant memory, but apart from that everything else is pretty much the same.
The address of the company headquarters is still offered as a virtual office and the latest 10-Q is still a mess. Here’s a summary of the figures recorded on May 31:
- cash: $8,983
- total assets: $24,393
- current liabilities: $1,378,711
- NO revenue since inception
- quarterly net loss: $614,031
Another thing that hasn’t changed since we last wrote about the company is related to the press releases – they sound just as optimistic. Yesterday, for example, DNRG announced that they have signed a memorandum of understanding with Al-Rushaid Technologies. The new partners will look for common business interests and will combine their efforts in an attempt to complete numerous projects that will, hopefully, bring a lot of financial benefits one day.
People’s reaction to the press releases is also pretty similar to what we were seeing a few months ago. Yesterday’s announcement caused quite a stir and after six and a half hours of active trading, DNRG reached a close of just over $0.08 (about 10% above the value at the end of Monday’s session).
People are just as happy to jump in as they were back in June and they are once again overlooking the toxic notes that the company is burdened with and the colossal amount of ludicrously discounted stock that can hit the open market at any time. Between October 2014 and May 2015, DNRG picked up exactly $280,000 worth of debt convertible into stock at a 50% discount.
Between May 31 and July 20, the company issued a total of 35,598,586 shares as a conversion of $68,655 worth of notes which, if all the calculations are correct, means that on July 20, the number of issued and outstanding shares stood at a little over 131 million. By August 14, it had balooned to more than 171 million and that’s when the Board of Directors decided to raise the A/S count from 200 million to 700 million.
So, the exuberant stock printing is unlikely to end soon, but can DNRG defy the odds and raise the value of their shareholders despite it? That is for time to tell. Considering the pitiful cash reserves, however, they need to spend wisely.
About forty minutes into today’s session DNRG is traded at $0.075 (about 8% in the red).
