Addvalue Technologies, on Nov 26, announced that it has commenced arbitration proceedings at the Hong Kong International Arbitration Centre (HKIAC) against Chinese-incorporated company, XEPIC Corporation. The proceedings were commenced by Addvalue’s wholly-owned subsidiary, Addvalue Communications Pte Ltd.
In its statement, Addvalue says it will seek at least US$2.1 million ($2.8 million) and damages for wrongful termination or repudiation of contracts in relation to the production of field programmable gate arrays (FPGA)-based products. Under the contracts, Addvalue was also supposed to provide original equipment manufacturing technical services for XEPIC Corporation.
The arbitration proceedings are not expected to have any material impact on Addvalue’s financial results.
Shares in Addvalue closed at 1.1 cents on Nov 25.
