Dominovas Energy Corp (OTCMKTS:DNRG) shares rose 20% to $0.00300 on Tuesday and stayed flat in after-hours trading. The company has a market cap of $741,575.00 at 237.30 million shares outstanding. Share prices have been trading in a 52-week range of $0.00 to $0.21.
Dominovas Energy Corp is an exploration-stage company that looks for opportunities in the green and renewable energy industry. In an open letter to shareholders last month, Dominovas CEO Neal Allen shared his positive outlook for the company after having created CURRENERGY, its new hydro division brought forth via partnership with ANDRITZ Hydro. He also shared that the company has a number of OEM partners it is working in collaboration with.
However, it’s also known to most shareholders that the company is struggling with its convertible debt, which has been weighing a lot on share prices in the past few weeks. According to Dominovas Energy Corp COO Michael Watkins, the company is changing its financing and operational methods to remove approximately $700,000 in convertible debt.
In particular, the company is planning on taking control of the funds stemming from its financing agreement with GHS Investments, LLC. This agreement has already been approved by the SEC while the company continues to initiate talks with its convertible debt financing partners in hopes of settling convertible notes with cash instead of shares.
According to FINRA data, short interest on Dominovas Energy Corp shares increased by 11.05% in August from 57,000 in the previous month to 63,300. This suggests that bearish pressure on the stock remains very strong as investors await more signs of progress in eliminating convertible debt. The company has reported negative earnings in the latest quarter and has underperformed the S&P by 101.08%. Dilution continues to weigh on share prices ever since the company reported a landmark capital commitment of $1.2 billion dollars in financing with Graecrest Energy Solutions last year.
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