Earlier in week, Dominovas Energy Corp (OTCMKTS:DNRG) managed to record two green sessions on hype and promotional campaigns, before crashing more than 14% in last two trading sessions. Yesterday, the stock price struggled to sustain on higher levels and in fact kept on sliding in the entire trading session. It lost 7.53% and closed at $0.0860 on share volume of 3.39 million much lower than average share volume of 12.24 million.

The performance

As an OTC marketplace penny stock, Dominovas is extremely volatile. The company released several promising PRs and launched promotional pumps so as to boost the stock prices. However, these factors just provide short-term respite to the declining stock. It is what the stock pumps do, and in this specific case, the company also have staggering amount of toxic debt to be paid sometime in near future.

The problem of toxic debt

Coming to toxic debt, as of now the company has not provided any details on to how much of the $427,000 debt that Dominovas owes to LG Capital Funding and Kodiak Capital has been converted into company’s shares. Moreover, the terms of the conversion following which the note holders can convert the debt into stocks for as low as $0.0022 per share, are enough to make investors wary. If LG and Kodiak grab this opportunity, the investors would witness cheap shares floating into the market. Needless to highlight, such an action would certainly send the stock price tumbling down on the charts.

The numbers

Dominovas Energy Corp (OTCMKTS:DNRG) is moving forward strong with its growth plans, and therefore the investors are largely ignoring the dismal financial performance of the company. As per the latest report, the company posted cash of $9,000 and current assets stood at $24,000. It reported no revenue while net loss was $1.3 million. The company disclosed debt conversion loss of $340,000.