On December 1, 2023, Charge Enterprises, Inc received a Supplemental Letter and an Exchange Default Letter from Arena, alleging further defaults related to non-payment under the Securities Purchase Agreements, Notes, and breaches of representations in the Special Advisor Agreement with Korr Acquisitions Group, Inc. The letters reiterate demands for additional interest, fees, and payments. Arena asserts events of default under the Exchange Agreement, claiming breaches of representations and demanding liquidated damages and accrued interest. Charge Enterprises continues to explore options to protect its rights and pursue legal remedies concerning these new developments and previous disclosures.

The Company warns of potential severe effects on its liquidity, financial condition, and ability to continue operations should it be unable to meet payment obligations or trigger defaults under other agreements containing cross-default provisions.