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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