Dominovas Energy Corp. (OTCMKTS:DNRG) Runs Out Of Steam Again
Dominovas Energy Corp. (OTCMKTS:DNRG) managed two whole sessions on pump and hype publicity, before crashing 7.00% down the charts yesterday.
The ticker’s struggle throughout yesterday’s session was almost painful to watch, as evidently there are still investors that wholeheartedly believe that this is an opportune moment to commit to DNRG stock. However, ever time said investors try to make another push, prices are cruelly slammed right back to the ground. Why?
Well, as an OTC Markets penny stock, DNRG is extremely volatile. All sort of factors toss it up and down the charts at all times.
For instance, the promotional e-mails that the company itself paid for afforded its some respite, but it was clear from the get-go that said recovery wouldn’t last. OTC Markets pump-jumps never do – and in this particular case, the fact that DNRG still had staggering amounts of outstanding toxic debt probably did a lot to complicate matters.
As usual, there is no way to tell how much of the $427 thousand that DNRG owes to Kodiak Capital Group and LG Capital Funding, LLC has already been converted into shares of common stock. However, the fact that the rest of it can be turned “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” should be enough to make any investor wary.
And investors should be especially careful in today’s trading session – as this is the last foreseeable opportunity the noteholders will get to convert said debt at prices as low as $0.0022 per share. If Kodiak and LG take this opportunity, the market could be flooded with cheap shares.
Needless to say, such an event would surely send the ticker tumbling down to the bottom of the charts – which is why investors who wish to have anything to do with DNRG stock today should be extra vigilant.
