Volt Power Group Limited (ASX: VPR) operates as an energy company. The Company offers a technology that harvests waste heat from power generation and other industrial process and turns into low emission electricity, as well as acquires and develops power generation assets. Volt Power Group serves customers in Australia.
On 04 January 2019, the company stated the latest update with respect to its Wescone business acquired in January 2018. Volt confirms that it has filed a Writ against the vendor of Wescone Distribution Pty Limited (Wescone) in the Supreme Court of Western Australia (Wescone Writ).
The Wescone Writ seeks a Court Order for damages including interest and costs for Breach of Contract and/or that agreements relevant to the Wescone Acquisition. The company has contended that the pacts are void due to the misleading and deceptive conduct and all the purchase monies be refunded to it.
The Wescone Writ has been filed on the basis that the material information in relation to the BHP relationship with Wescone was not disclosed to Volt before Wescone Acquisition Completion. Volt subsequently announced to the ASX on 11 September 2018 that BHP had advised Wescone that its crusher repair services were no longer required. The Volt Board will update shareholders with respect to any material developments relating to the Wescone Writ as and when they occur.
As per the above-stated announcement, on 11 September 2018, the company’s wholly owned subsidiary, Wescone Distribution Pty Limited (Wescone) was advised by the BHP that it does not require Wescone crusher repair services for its fleet of BHP-owned Wescone W300 sample crushers any more.
BHP also confirmed that it had taken a decision to use an alternative engineering services business so as to service its Wescone W300 sample crusher fleet using non-OEM components for repair and service.
Managing Director of the company, Mr. Adam Boyd said that the company’s Board was very disappointed with BHP’s unexpected decision. Wescone will continue its traditional repair service for all other W300 sample crusher supplied customers. He said that the company is continuing to work with the Wescone vendors to bring out the circumstances which had led to the BHP position and outcomes. The company will continue to maintain the Wescone businesses long-term relationships based on reliable W300 crusher performance and service provision. He also pointed that the company will continue to make Wescone services available to BHP should they require access to proven and upgraded Wescone OEM components going forward.
If we take a look at the stock performance, the price of the stock of the company has fallen by 33.33 percent in the past six months as on 3 January 2019. VPR’s shares traded at $0.002 with the market capitalization of circa $16.49 million as on 4 January 2019. (AEST 04:00 PM).