Dominovas Energy Corp. (OTCMKTS:DNRG) Sinks Like A Stone
Dominovas Energy Corp. (OTCMKTS:DNRG) suffered another crushing drop yesterday, losing 26.61% of its market value in a single headlong tumble.
Currently, DNRG presents an interesting case to long term investors, opportunistic buyers and stock analysts alike.
On one hand, everything the company has announced lately warrants attention and begs investors to commit to its stock. The contract with the US government, the anticipated co-operation of powerful financial institutions such as Overseas Private Investment Corporation and the Africa Development Bank, and the enlistment of experienced additions like Eric Fresh are like flashing neon signs that all read – “this thing can become HUGE”.
On the other hand, the company’s present state leaves quite a lot of room for doubt as to whether or not it can seize ANY opportunity at all. So far, it hasn’t really done anything of the sort, and there is no solid evidence that it is capable of doing so.
And then, there is the matter of toxic funding. Commercial success may or may not come, but if it does it will not happen any time soon. However, there is a very real and immediate threat that demands the investors’ attention – namely, the dilution that could hit the market as a result of a $330 thousand wort of convertible debt with “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 up to [and after] April 28, 2015”.
True, there is no real way to be certain that the noteholder Kodiak will exploit this opportunity to flood the market with DNRG shares as cheap as $0.0022. However, the fact that the ticker is dragging its feet in spite of all the hype suggests that this is probably happening already.
If this is the case, the ticker should stabilize when thirty days have elapsed since DNRG‘s initial explosive jump.
