Barron Partners notifies China Power Equipment Inc. ("CPQQ") regarding notice of Upcoming Default
PR Newswire Barron Partners
22 minutes ago
NEW YORK, April 10, 2014 /PRNewswire/ -- Barron Partners is the holder of 3,100,000 shares of CPQQ Series B Convertible Preferred Stock purchased under the Securities Purchase Agreement dated as of November 30, 2009 by and among China Power Equipment Inc. and Barron Partners (the "SPA"). Barron Partners is also the holder of approximately 2,600,000 shares of CPQQ common stock purchased.
Reference is made to the SPA, Pursuant to which CPQQ is to not take any action which would cause its common stock not to be traded on the OTC Bulletin Board (now the OTCQB).
On March 28, 2014 CPQQ announced that it has suspended its obligation to file periodic reports under Section 15(d) of the Securities Exchange Act of 1934, as amended. This action, if not reversed immediately, will result in the shares of CPQQ not being tradable on the OTCQB in direct violation of the SPA.
The total cost of CPQQ stock held by Barron Partners as of the date of this notice has a value of over $8,000,000, all of which Barron Partners stands to lose if CPQQ shares fail to be tradable in the OTCQB.
Please let this letter serve as a notice of a breach of contract by CPQQ under the SPA for failing to continue trading on the OTC Bulletin Board. Demand is hereby made that CPQQ take all actions reasonable and necessary to continue to have its shares traded on the OTC Bulletin Board (OTCQB) including, without limitation the timely filing of all periodic reports under the Securities Exchange Act of 1934, as amended. Please advise as to the steps that CPQQ intends to take to continue to have its shares traded on the OTC Bulletin Board (OTCQB).
Barron Partners reserves all rights and remedies with respect to the foregoing, including, without limitation, the right to bring legal proceedings to enforce its rights and claims against CPQQ.
