Dominovas Energy Corp (OTCMKTS:DNRG) reported it engaged Pyrenees Investments, LLC as its investment bank to design a private placement of warrants and shares of common stock to buy shares of common stock. It will generate gross proceeds of up to $10 million that the company intends to utilize to meet working capital needs. The offering is expected to close by the end of 3Q2015, depending on fulfillment of customary closing conditions.
Dominovas Energy will use the capital to expand its energies in the development and deployment of sustainable, clean and reliable power generation using the RUBICON™ system. Eric Fresh, the Senior VP of Finance and Investments, said that engaging Pyrenees Investments to obtain investment capital enhances their ability to expand the measures to fulfill the standard demand for amplified power generation and supply worldwide.
The expert view
Mr. Fresh further added that the proposed capital raise would boost a financing structure that supports the long-term goals and growth prospects of Dominovas Energy. Provided the company’s elevated trading profile, supported by massive daily volume and involvement of institutional investors, they are consistently attracting more supportive and knowledgeable investor base. It is providing an opportunity to obtain financing through deals that typically are used by pre-revenue public firms.
The senior VP of Finance and Investments concluded that as an entity, they are rapidly moving from a typical micro-cap firm’s dependence on the use of toxic forms of equity-based financing and convertible debt. Conversely, financing deals comprising common shares with warrants are in the interests of investors.
In last trading session, the stock price of Dominovas Energy Corp (OTCMKTS:DNRG) surged more than 21% to close the trading session at $0.0905. The gains came at a share volume of 4.04 million compared to an average share volume of 22.12 million. Dominovas market cap stands at $8.39 million.