Dominovas Energy Corporation (DNRG) Unveils Strategy to Restructure and Eliminate Convertible Debt
Before the opening bell on Wednesday, Dominovas Energy Corporation (OTCQB: DNRG) unveiled a new plan aimed at restructuring and eliminating its roughly $700,000 in outstanding convertible debt. The company intends to leverage funds stemming from its financing agreement with GHS Investments, LLC, which was originally announced in November 2015 and approved by the U.S. Securities and Exchange Commission in January, in order to move away from the utilization of convertible debt as a sole source of financing. Drawing down on its GHS Investments equity line, Dominovas Energy will look to enter into discussions with its convertible debt financing partners in an effort to repay convertible notes with cash instead of shares.
“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,” Michael Watkins, chief operating officer of Dominovas Energy, stated in yesterday’s news release. “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.”
In addition to plans to repay convertible notes, Dominovas Energy is also in ongoing discussions with GHS Investments regarding a long-term equity financing strategy that does not create additional convertible debt. As of yesterday’s update, the company had no plans in place to add new debt or operational capital in connection with its restructuring plan, but a future agreement could play a key role in Dominovas Energy’s efforts to build on the successful presentation of its 50kW RUBICON™ solid oxide fuel cell (SOFC) unit, which is set for installation in South Africa in August, with the eventual deployment of its multi-Megawatt power generation units in sub-Saharan Africa.
Last November, Dominovas completed a concept design study for the efficient manufacturing of its proprietary RUBICON™ SOFC system, during which it identified optimal process design efficiencies, manufacturing and logistical details, and aggregate cost and lead-time estimates. In May, the company built on that unprecedented study when it, in partnership with Edison Power Group, announced plans to launch the first RUBICON™ SOFC system in Johannesburg, South Africa, which will be the first SOFC unit to serve baseload capacity on the African continent upon implementation. With newly-announced plans to restructure and consolidate its outstanding debt ahead of this launch, Dominovas Energy is strengthening its position in the power generation space and clearing the way for the “minimum deployment of 50MW over the next 5 years of Dominovas Energy’s RUBICON™ fuel cell system,” according to Watkins.
For more information, visit www.dominovasenergy.com
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Before the opening bell on Wednesday, Dominovas Energy Corporation (OTCQB: DNRG) unveiled a new plan aimed at restructuring and eliminating its roughly $700,000 in outstanding convertible debt. The company intends to leverage funds stemming from its financing agreement with GHS Investments, LLC, which was originally announced in November 2015 and approved by the U.S. Securities and Exchange Commission in January, in order to move away from the utilization of convertible debt as a sole source of financing. Drawing down on its GHS Investments equity line, Dominovas Energy will look to enter into discussions with its convertible debt financing partners in an effort to repay convertible notes with cash instead of shares.
“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,” Michael Watkins, chief operating officer of Dominovas Energy, stated in yesterday’s news release. “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.”
In addition to plans to repay convertible notes, Dominovas Energy is also in ongoing discussions with GHS Investments regarding a long-term equity financing strategy that does not create additional convertible debt. As of yesterday’s update, the company had no plans in place to add new debt or operational capital in connection with its restructuring plan, but a future agreement could play a key role in Dominovas Energy’s efforts to build on the successful presentation of its 50kW RUBICON™ solid oxide fuel cell (SOFC) unit, which is set for installation in South Africa in August, with the eventual deployment of its multi-Megawatt power generation units in sub-Saharan Africa.
Last November, Dominovas completed a concept design study for the efficient manufacturing of its proprietary RUBICON™ SOFC system, during which it identified optimal process design efficiencies, manufacturing and logistical details, and aggregate cost and lead-time estimates. In May, the company built on that unprecedented study when it, in partnership with Edison Power Group, announced plans to launch the first RUBICON™ SOFC system in Johannesburg, South Africa, which will be the first SOFC unit to serve baseload capacity on the African continent upon implementation. With newly-announced plans to restructure and consolidate its outstanding debt ahead of this launch, Dominovas Energy is strengthening its position in the power generation space and clearing the way for the “minimum deployment of 50MW over the next 5 years of Dominovas Energy’s RUBICON™ fuel cell system,” according to Watkins.
For more information, visit www.dominovasenergy.com
Please see disclaimer on the QualityStocks website: http://Disclaimer.QualityStocks.com
