HS questions Energy Vault's (NRGV) disclosures regarding $50 million License and Royalty Agreement with Atlas Renewable and China Tianying.

On May 10, 2022, a securities fraud investigation update disclosed that Energy Vault will advance $25 million for a construction project in China.

Rhea-AI Summary

On May 10, 2022, a securities fraud investigation update disclosed that Energy Vault will advance $25 million for a construction project in China. However, the project is merely a demonstration, and its capacity of 100MWh is inadequate compared to the 600MWh required for mainstream power generation in China. Additionally, the company's reported $50 million License and Royalty Agreement may have misrepresented its revenue-generating capabilities, potentially harming investors and violating securities laws.

Positive

• Energy Vault advances $25 million for project construction.

Negative

• Project in China has insufficient capacity at 100MWh, falling short of 600MWh required.
• Misrepresentation regarding the $50 million License and Royalty Agreement potentially harming investors.

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NEWPORT, Calif., May 10, 2022 /PRNewswire/ -- 

Securities Fraud Investigation Update:

1. "Energy Vault will advance $25 million for the construction of the project" writes Yunfan Zhao in China's 21st Century Business Herald.
   "Energy Vault方面则将垫付2500万美元用于该项目的建设。"
2. "The Energy Vault build in China is just a demonstration," according to Jian Li, Secretary of the Party Committee of Rudong Coastal Economic Development Zone.
3. "Mainstream power generation in China requires 600MWh to run 8,000 hours per year, while the Energy Vault project is only 100MWh - lacking any practical application for backup storage in China," according to Chinese Engineer, Jijun Zhu.
4. Misrepresentation and omission of material facts, including with regard to the $50 million License and Royalty Agreement with Atlas Renewable and China Tianying, may have falsely portrayed Energy Vault's true ability to generate revenues, and consequently, may have inflicted harm on public investors and be a violation of Securities Law.

Energy Vault (NRGV) Securities Fraud Investigation Update

SO, WHAT: 
If you purchased Energy Vault stock (NRGV, NRGV-WT), you may be entitled to compensation without payment of any out-of-pocket fees or costs through a contingency fee arrangement.

WHAT TO DO NEXT: 
To join the prospective class action, see prior press releases about the Energy Vault Securities Fraud Investigation: 
Energy Vault's claim to landing $520 million dollar revenue deal from DG Fuels 
Energy Vault (NRGV) Securities Fraud Investigation

Contact

Hittelman Strunk LLP
https://www.hittelmanstrunk.com/ 
Email: info@hittelmanstrunk.com

View original content:https://www.prnewswire.com/news-releases/hs-questions-energy-vaults-nrgv-disclosures-regarding-50-million-license-and-royalty-agreement-with-atlas-renewable-and-china-tianying-301544233.html

SOURCE Hittelman Strunk

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What is the recent update on Energy Vault's investigation related to NRGV?

On May 10, 2022, it was reported that Energy Vault is under investigation for potential securities fraud concerning its disclosures about a $50 million License and Royalty Agreement.

What amount is Energy Vault advancing for the construction project?

Energy Vault will advance $25 million for the construction of a project in China.

What are the capacity requirements for power generation in China compared to Energy Vault's project?

Mainstream power generation in China requires 600MWh, while Energy Vault's project only has a capacity of 100MWh.

What are the implications of the misrepresentation about the License and Royalty Agreement by Energy Vault?

The misrepresentation may have falsely portrayed Energy Vault's revenue-generating capabilities, potentially harming investors and violating securities laws.