Will Dominovas Energy Corp. (OTCMKTS:DNRG) Head up Now?
Friday saw Dominovas Energy Corp. (OTCMKTS:DNRG) slip another 12.79% down the charts, but now that a month has passed since its initial jump, investors have one less thing to worry about when considering this company.
As we’ve mentioned on multiple occasions in the past, a major threat to DNRG investors was the fact that two DNRG noteholders had $427 thousand worth of convertible debt that converted “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.”
The biggest problem with that state of developments was the fact that this gave the noteholders – Kodiak Capital Group and LG Capital Funding, LLC – the opportunity to make tremendous returns on a relatively small investment by flooding the market with DNRG shares they converted for $0.0022 a pop.
That threat is now passed, and although the danger of the remainder of said debt hitting the market at serious discounted prices remains, currently the situation is a lot less grim than it was on Friday. This is certainly a favorable development and will likely be a serious driving factor for DNRG‘s movements in the sessions to come.
However, long term investors and opportunistic traders alike would do well to remember that until said debt is cleared, DNRG investor value will always be threatened.
