The Welsh Rugby Union (WRU) owns a 50% stake in the region and has said it may take over if the Dragons fail to attract new investment.
But Davies says new investment could help the Dragons become a fully independent region.
"There's a lot of interest and a lot of work going on around that," he told BBC Radio Wales Sport.
"We're at a point now where we have investors interested. They've tabled the terms on which they're prepared to come on board, and now we have to consider if they're acceptable.
"In effect, that would amount to a handing of the reins to a new collective of investors.
"It's important the current board are happy to hand over the reins based on the terms of the prospective investors."
The Dragons' future has been under scrutiny recently, with former captain Michael Owen saying the "mediocre" region should move elsewhere in Wales if any new investors want them to.
The ex-Wales skipper suggested the region could move to Pontypridd or north Wales, while WRU chief executive Martyn Phillips said the Dragons are "in a difficult spot at the minute".
The criticism comes despite Dragons' management unveiling plans to establish themselves as an independent region.
"Whether it's as governors or joint-owners of the Dragons, the union [WRU] have been very close to this process all along," said Davies.
"They've been shoulder to shoulder with us on this.
"But the model and the aspiration in terms of an independent Dragons - new investment, new ownership - all that remains."
Newport Gwent Dragons are attracting interest from new investors, says chief executive Stuart Davies.