Dominovas Energy Corp. (OTCMKTS:DNRG) Soars On PR

Dominovas Energy Corp. (OTCMKTS:DNRG) made a staggering announcement yesterday, claiming to have secured $1.2 billion to fund the initial phase to manufacture, produce, and deploy of its RUBICON™ SOFC systems. The ticker promptly jumped 224.16% up in the air, on an amazing $2.5 million volume – but was that jump a bit premature?

Let’s just say that DNRG has been known to make exaggerated claims on previous occasions. Yes – its announcement was lout and boastful, and yes – if it is true, it could mean that the company is headed for the top. But here’s the thing – at this point in time there is no real proof that such an agreement actually exists.

Check the company’s SEC profile. There’s nothing in there about the much overhyped funding agreement. Why hasn’t it been reported yet? Usually when such important matters are concerned, the filing accompanies the PR or vise versa.

The fact that the all-important proof of the company’s claims to glory is missing should raise an immediate red flag in the minds of investors. After all, this could be a ruse – a clumsy plan to create insane levels of hype and push the ticker sky-high, so that the company’s stock could become liquid, if only momentarily.

Since there is no filing at the present moment, it is impossible to be sure that this is not, in fact, the case. However, the fact that DNRG has performed various stock-related shenanigans over the years, and doesn’t seem to have let go of that habit by now, should definitely be taken into account by investors. What do we mean?

In the first two quarters of 2015 alone, DNRG has issued notes for approximately $300 thousand worth of debt convertible into stock at a 50% discount. June and July 2015 have seen 35.6 MILLION new shares issued as a result of the conversion of $68 thousand worth of notes. That brought the shares outstanding at the time to a whooping 131 million. By mid August, that number had grown by almost 40 MILLION shares. The fact that DNRG‘s shares authorized were increased from 200 million to 700 million speaks loud enough in and of itself.

So let’s do a quick recap the situation described so far. Dubious penny stock company with little to no achievements to date and a ton of toxic debt makes big announcement. The ticker skyrockets, in spite of the fact that the company’s claims are unproven and, in light of its mediocrity to date, seem unrealistic.

At this point, it should be pretty obvious how this story’s going to end.