Dominovas Energy Corp. (fka DNRG)

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Dominovas Energy Announces Plan to Restructure and Consolidate Outstanding Debt


http://dominovasenergy.com/dominovas-energy-announces-plan-to-restructure-and-consolidate-outstanding-debt/

ATLANTA, GA–(Marketwired – Jun 29, 2016) – Dominovas Energy Corporation (OTCQB: DNRG) today announces the activation of a plan targeted to restructure and eliminate the Company’s approximately $700,000 in convertible debt. As the Company entered into an agreement with GHS Investments, LLC and it received an effective notice for its S-1 filing in January of this year for up to US $7.5M, its plan now is to utilize this vehicle for operating capital and to reduce its convertible debt.

On November 12th, 2015, the Company closed agreements with GHS Investments, LLC for the purchase of Dominovas Energy shares which would allow the Company to receive up to $7.5M. On January 11, 2016, the Company received its notice of effectiveness for the S-1 Registration Statement from the Securities and Exchange Commission that was filed late December of 2015. This plan represents a shift in the overall financing strategy of Dominovas Energy, moving away from the utilization of convertible debt as a sole source of financing.

As the Company draws down on its GHS Investment equity line and has additional cash proceeds available, it plans to enter into discussions with its convertible debt financing partners for the potential repayment of the convertible notes with cash instead of shares. The Company is also in discussions with GHS Investments regarding long-term equity financing strategy that is not a convertible debt structure. Dominovas Energy currently has no plans to take on any new debt or operational capital in connection with this restructuring plan.

“Dominovas Energy is one of the most prolific companies of its kind in the fuel cell industry. It has best-in-class strategic partners for the build and manufacturing of its RUBICON™ fuel cell system; it has contract orders for multiple-Megawatts (MW); it has project financing in place once requisite guarantees are set and in place; the Company has what most Companies in the industry have longed for – so we had to take a close look at what could be depressing the stock price,” said Dominovas Energy COO Michael Watkins. “We came to the realization and belief that there is simply too much pressure on the stock as a result of the existing convertible debt; and with our new plan to eliminate said debt, we hope to see representative growth for the Company. We have changed our methods of financing and operating the Company with a goal of increasing clarity and reporting of our operations and providing a stronger vehicle for our shareholders,” Watkins concluded.

“With the successful presentation of the 50kW ‘Showcase’ set for installation in Johannesburg, South Africa in August, the Company will be well on its way for the eventual deployment of its multi-Megawatts units in sub-Saharan Africa,” said Watkins.