The arbitration was initiated by Infiniteria Europe Sàrl and its subsidiary Infiniteria Sweden AB (together, the “Claimants”), who have submitted a request for arbitration under the LCIA Rules. The claim stems from the partnership between Enviro and the Claimants regarding a plant project in Sweden. The Claimants assert that Enviro is liable to pay approximately EUR 54 million in damages for alleged breach of contract and related damages, of which EUR 42 million is attributable to future lost profits, as estimated by the Claimants. Additionally, the Claimants seek interest on the amount claimed and compensation for legal costs.

Enviro strongly disagrees with Claimants’ view on the circumstances of the matter, the legal grounds invoked in the request for arbitration, and the calculation of the alleged damages. The Claimants seek, among other things, compensation for damages which have not yet materialised based on alleged anticipated future delays that have not occurred. Enviro considers these claims to be unfounded and speculative, and Enviro firmly opposes the Claimants’ assertions. Accordingly, Enviro intends to dispute the claims and the claimed amount of the alleged damages in their entirety.

Enviro has been served with the request for arbitration and will submit a statement of defense, and potential counterclaims, in due course. Enviro has retained legal counsel and will vigorously defend its position. The Company remains confident in its contractual rights and in the underlying value of its business and interests.