West Mountain Environmental (TSX VENTURE:WMT) announced receipt of notice that a lawsuit had been filed by Shanghai Hehui Environmental Technology. The company claims that West Mountain Environmental failed to deliver the TPS unit in a timeframe that was agreed.
As quoted in the press release:
As a result a Chinese Court ordered that WMT’s bank accounts be frozen until a hearing is held on March 27th, 2017 in Shanghai. Refer to the Company’s news release of October 19, 2016 for additional information regarding the underlying commercial transaction.
WMT is vigorously defending the claim and preparing a counterclaim. The Company’s Chinese legal counsel believes the claim has no merit and is very optimistic that the Court ordered bank account freeze will be lifted and the claim will be dismissed once all the information is presented.