Dominovas Energy Corp. (OTCMKTS:DNRG)’s Jump Continues
Yesterday marked Dominovas Energy Corp. (OTCMKTS:DNRG)’s second green session in a row – which makes two out of two so far this week. But will its luck hold?
True, DNRG has been the focus of investor attention for some time now, because of the multitude of good news and boastful press releases it keeps publishing.
However, in spite of all that optimism, investors should probably not forget that there are quite a few red flags surrounding the company. Many of them can be found in its latest financial report, which looked just awful:
- Cash – $9 thousand
- Current Assets – $24 thousand
- Current Liabilities – $1.3 million
- NO REVENUES
- Convertible debt – $427 thousand
- Loss on debt conversion – $340 thousand
- Net loss – $1.3 million
Another huge point of concern that the report reveals is the fact that DNRG has $427 thousand worth of convertible debt that converts “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.”
This means that in the next four sessions, said debt can be converted at prices as low as $0.0022 and dumped on the market.
And if that wasn’t bad enough of a tip-off, just two days ago, a promotional e-mail sponsored by the company itself hit in-boxes.
These facts in and of themselves speak clearly enough for any investor to understand – and when facts speak, investors should probably take notice.
