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Arrows Up to contest court ruling that it must pay SandBox fraud damages

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Dry Bulk,

Arrows Up, a solutions provider for the bulk storage and transportation industry, has announced it will secure a stay against a ruling on October 3 by the Texas State Court that it must pay SandBox, a subsidiary of US Silica, US$49.2 million in damages for fraud and the breaching of a 2015 settlement agreement and 2014 confidentiality and non-disclosure agreement with SandBox.

The court also ruled that all Arrows Up frac sand shipping containers manufactured, sold or leased since January 2015 are actually the property of SandBox.

US Silica President and CEO, Bryan Shinn, said: "We're very happy with the outcome of this case. The ruling reaffirms the strength of Sandbox's intellectual property and its broad patent portfolio. As the leading provider of last-mile containerised solutions, our Sandbox unit continues to add customers and new product offerings that solidify its industry-leading position in this growing and dynamic market segment. We will strongly support an orderly transition from Arrows Up to Sandbox that minimises customer disruptions."

Kevin Shuba, CEO of Arrows Up’s managing affiliate OmniTRAX, said: “From the beginning, this lawsuit has been an attempt by SandBox to shut out competition [within the frac sands logistics industry] and we are committed to fighting for open competition within our industry while protecting our superior intellectual property claims.”

Arrows Up business operations are continuing while the company attempts to resolves the outstanding contract dispute in the Texas Court of Appeals.

“The lower court judgment is not enforceable until the appeals process is complete and it does not address the pivotal issue of contract enforceability,” added Shuba. “We remain convinced that the contract as written is an unenforceable restraint of trade and will seek relief in the Texas Court of Appeals.”

In addition to the Texas State Court appeal, Arrows Up is continuing its federal suit against SandBox to protect its intellectual property rights.

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