The latest piece of information that Dominovas Energy Corp (OTCMKTS:DNRG) has to offer is its critical relationships with strategic financing partners under the Power Africa Initiative. The company proudly announced that it is extending and fostering relations with a number of private and public lenders, which have a vital role to play in the Power Africa Initiative.
Some of these lenders include Barclays, Goldman Sachs, Standard Bank, etc., noted Dominovas Energy Corp (OTCMKTS:DNRG). The company has also reached out to global development finance institutions (DFIs) like Africa Development Bank (AfDB) and the Overseas Private Investment Corporation (OPIC). Also, the company informed that it has added Eric Fresh, former GE Capital veteran, to lead the company’s finance, investment and capital deployment activities. Fresh will also oversee the coordination with all of its Power Africa Partners.
The real problem
Though the developments recorded by the company are heartening, but they do no cover-up the issues surrounding it. The company’s financial standing is far from better, which continues to be a challenging factor for its growth. At the same time, a more pressing issue is believed to be the company’s note holder – Kodiak Capital Group. The said holder has the right to offload nearly $330,000 worth of the company’s stock in the market at any point of time. It does not end here as the debt is convertible into stock at the rate of as little as $0.0022 per share.
Based on this information and Dominovas Energy Corp (OTCMKTS:DNRG)’s negative sessions over the last few sessions, it is not surprising to believe that some of those debt might have already been converted.
Also, the conversion of this debt is unavoidable, which is enough of a clue to know that the stock is likely to suffer a deep value erosion in the upcoming days. The first signs have already started emerging as the stock of the company fell by 4.62% to $0.0620 during the previous trade day, and a total of 9.61 million shares changed hands.