Will Dominovas Energy Corp. (OTCMKTS:DNRG) Bounce Further Up?
Judging by yesterday’s bounce and by today’s green opening, one may conclude that Dominovas Energy Corp. (OTCMKTS:DNRG) has concluded its downward slide. But will that truly be the case?
Frankly, all the evidence that due diligence can provide seems to point that the exact opposite is more likely. Just take a look at the numbers that DNRG gave in its latest financial report, for Q1 2015:
- ZERO IN CASH
- Prepaids – $15 thousand
- Convertible debt – $330 thousand
- Current Liabilities – $1.1 million
- Net loss – $228 thousand
Those figures can hardly inspire confidence. In fact the very opposite is truer, as companies filing for bankruptcy often have less depressing financials.
However, the real problem, which is also probably the cause of DNRG‘s latest catastrophic crash lies elsewhere.
As the company’s latest financial report grudgingly reveals, DNRG has issued convertible notes to Kodiak Capital Group worth approximately $330 thousand, which sport conversion provisions allowing the note holder to turn said debt into common stock at prices of either $0.0044 or $0.0022.
It is unclear how much of that debt has already been converted and dumped on the market, but the bottom line is that its existence is a continued threat to investor value. Investors should make note of that before they commit to DNRG stock.
