REPOST DNRG .0015/ Dominovas Energy Corporation (OTCMKTS:DNRG) Making A Comeback
By Alex Carlson / in Energy & Solar, Momentum Stocks, Stocks / on Wednesday, 24 Aug 2016 04:17 AM / 0 Comment / 688 views
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Dominovas Energy Corporation (OTCMKTS:DNRG) is a name that many had written off for dead. Delay after delay has plagued its long awaited RUBICON™ project. However, yesterday, the company finally delivered the news finalizing plans to deliver its long awaited RUBICON™ to the University of Johannesburg in Johannesburg, South Africa. Shares rallied over 76% as a result with the shorts scrambling and dip buyers finally buying after being on the sidelines all year. Now investors are asking if the bottom is finally in and if this is the start of a new bull run for DNRG.
First up a little background on the company. Dominovas Energy Corporation describes itself as “a leading power solutions provider to emerging markets around the world. DNRG employs its proprietary RUBICON™ Solid Oxide Fuel Cell (SOFC) technology for deployment in multi-megawatt power generation units worldwide. The worldwide pursuit of clean and efficient production of electricity via Solid Oxide Fuel Cell technology inspired its founders to create an “energy solutions” company. Recognizing that “green” and “alternative energy” markets offer immense potential for growth, Dominovas Energy is aggressively moving to allocate its intellectual and financial capital forthwith, in order to strategically address a green energy solution that is 100% reliable, efficient, and measurably cleaner than GenSets and CCGT. Additionally, unlike wind and solar solutions the RUBICON provides baseload power 24/7/365 days a year.”
Since its initial announcement in May of 2016 that it would deliver a “Showcase” (Demonstration Unit), the company engineers and strategists, along with the unyielding support of its strategic partners have been working daily to deliver the much-anticipated RUBICON™ to the market place. The “Showcase” is a first step in Dominovas Energy’s ultimate goal to deliver its one-of-a-kind multi-Megawatt system to the region, as the engineering effort continues for the presentation of the first system in 2017.
The deal in South Africa was launched in partnership with the South Africa-based Edison Power Group. The 50kW RUBICON™ system will serve as a demonstration unit for future Edison Power Group sponsored multi-megawatt, utility scale deployments in Africa. The 50kW RUBICON™ will produce over 430,000 kilowatt hours of clean, fuel cell generated electricity each year. The 50kW RUBICON™ proof of concept “showcase” unit will be the first solid oxide fuel cell (SOFC) unit to serve baseload capacity anywhere on the African continent.
Besides the delays of the RUBICON system, the other problem for DNRG and its stock price has been dilution. The good news is that the company is rectifying this problem by restructuring approximately $700,000 in convertible debt. On November 12 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. COO Michael Watkins had this to say.
“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. 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.”
Currently trading with a market cap of just $1.18 million, DNRG has a history of explosive moves. Shares hit highs of $.14 a share last November. If the company can deploy its multi-Megawatts units throughout sub-Saharan Africa, we could easily see the stock turn into a multi-bagger for investors again
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