NEW YORK, April 9, 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.
SOURCE Barron Partners