Propellus Inc (PRPS)

[EarnestDD]

SSOL Liability could be higher. $1,450,000 plus.

CEEG (Shanghai) Solar Science & Technology Co., LTD., (parent of CEEG), here collectively called as CEEG, filed a lawsuit in USA against Sunvalley on September 18, 2015 to enforce the Foreign Arbitration Award issued by the Shanghai International Economic and Trade Arbitration Commission (SIETAC) in favor of CEEG and against Sunvalley, on December 10, 2013. CEEG requested damages of $1,000,000 representing the principal amount awarded to CEEG under the Arbitral Award in China plus interest, currency exchange loss and other professional fees in the amount approximately $450,000. On October 29, 2015, the Court granted CEEG’s motion to compel arbitration in China. However, Sunvalley will file an appeal to the Court to request the ruling of the CEEG case in the United States instead of China. Any potential loss arising from this claim has not been recorded as a liability as the probability of loss has been determined by the Company to be remote.

jmo