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Ebang International Announces Results of Mediation on a Sales Contract Dispute
HANGZHOU, China, Aug. 24, 2021 (GLOBE NEWSWIRE) -- Ebang International Holdings Inc. (Nasdaq: EBON, the “Company”), a blockchain technology company, today
About this update from Ebang International Holdings Inc.
[{"type":"text","content":"HANGZHOU, China, Aug. 24, 2021 (GLOBE NEWSWIRE) -- Ebang International Holdings Inc. (Nasdaq: EBON, the “Company”), a blockchain technology company, today announced the results of a mediation related to a dispute from a sales contract with one of its customers. As disclosed in the Company’s recent annual report filed with the Securities and Exchange Commission (the “SEC”), on November 22, 2019, the Company brought a claim in the Hangzhou Intermediate People’s Court against one of its customers and the ultimate beneficial owner of the mining machines in connection with its sales of 80,000 mining machines. On August 23, 2021, an agreement between the Company and the defendants Zhejiang Qirui Machinery Equipment Co., Ltd. (“Qirui”), Zhejiang Huatie Emergency Equipment Science &Technology Ltd. (“Huatie Emergency”), and Mr. Danfeng Hu, the President and CEO of Huatie Emergency, was reached and has come into effect following a mediation by the court. The result of mediation is as follows: All parties confirmed that the Company has delivered 80,000 mining machines involved in this case, of which 24,000 mining machines have been paid for. The rest of 56,000 mining machines will be paid by Niubo in the amount of RMB272 million. On August 20, 2021, Niubo paid RMB20 million. Niubo will pay the remaining in installments as follows: (i) RMB10 million by September 15, 2021, (ii) RMB76 million by December 31, 2021, (iii) RMB136 million by May 30, 2022, and (iv) RMB30 million by July 31, 2022.If Niubo fails to make the payment in full and on time in any such installment, the Company has the right to directly apply to the People’s Court for enforcement of all the outstanding payments and liquidate damages of Niubo. Kabayi assumes joint and several liabilities for all the aforementioned debts of Niubo.All parties confirmed there is no other disputes related to this sales contract. Qirui and Niubo released and discharged the Company of and from any and all liabilities and claims related to the sale of the mining machines. Mr. Dong Hu, Chairman and CEO of the Company, commented, “According to the court's mediation statement, if the party responsible for payment and its guarantor fully performs, the Company will ultimately receive a total of RMB 272 million in payment. Among them, 20 million yuan has already been received. This not only reflects the...