3Power Energy Group Inc (PSPW)

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Litigation

The Company is subject to certain legal proceedings and claims, which arise in the ordinary course of its business. Although occasional adverse decisions or settlements may occur, the Company believes that the final disposition of such matters should not have a material adverse effect on its financial position, results of operations or liquidity.

NOTE 10 — SUBSEQUENT EVENTS

In October 2017, the Company acquired 45% of Shala Energy Plc, a Republic of Ireland corporation. Subsequent to the acquisition, ownership was increased to 75% by acquiring an additional 30% from Falak Enterprises, a related party. Shala Energy Plc was formed to assist with financing opportunities. Purchase price of the 45% and additional 30% has yet to be determined and no consideration has been transferred. Shala Energy Plc is a recently formed entity with no significant assets or liabilities.

Subsequently, Shala Energy Plc formed a 60% owned subsidiary, 3Power Shala ShpK, as an Albanian Special Purpose Vehicle (“SPV”) as required by Albanian law, to bid and to successfully acquire an 83.5MW Shala River Concession.