Dominovas Energy Corp (OTCMKTS:DNRG) stock posted gains of more than 12% on Tuesday’s trading session on back of a promising PR release by the company. However, it was a short-lived gain as the stock eroded more than 17% of its market value in yesterday’s trading session. The decline came at a share volume of 7.90 million compared to average share volume of 9.21 million.
The buzz
Dominovas Energy latest Press Release was focused on company’s expectation to obtain the support of selected institutions that are particularly focused on using funds to support further advancement of power infrastructure projects based in sub-Saharan Africa. It was an encouraging PR and probably warranted the gain in stock that was recorded in Tuesday’s trading session. The news indicates that company can report higher profits in future. However, again it is just an expectation till the time the company is able to complete the task at hand.
The expectations
If Dominovas Energy achievements to date are considered, then the probability of success may appear dim. However, with the addition of veteran Eric Fresh, it can be an altogether a different case. Well, in any scenario, the company had to cover a long way to achieve the commercial success.
The problems
As of now, the main problem associated with the company is convertible notes. The latest quarterly report disclosed that a note holder, known as Kodiak Capital Group has convertible note of $330,000. The mentioned “Note” can be converted as a price for each share equivalent to the lowest closing bid share price for Dominovas Energy Corp (OTCMKTS:DNRG) common stock for the 30 trading session concluding on the trading session immediately prior to the conversion day multiplied by 50% at any period up to and after April 28, 2015. It indicates that for nearly two more weeks, the note holder can convert debt into stock at a price of $0.0022 per share.
