Coates International, Ltd. ("the Company") (OTCQB: COTE)
Mr. George J. Coates, President and CEO of the company, purchased approximately 39,000,000 restricted shares of the Company's common stock for $1,000,000. The company owed Mr. Coates approximately $1,900,000, most of which he advanced to the company over a period of time and the balance of which was from voluntarily deferring payment of his compensation. The result of this was to reduce the amount of Company's current liabilities and increase the common stock outstanding and additional paid-in capital on the balance sheet. As a result, it will not be necessary for the Company to satisfy this obligation by a cash payment. Mr. Coates is also the Company's majority stockholder.
Mr. George J. Coates commented: "I am committed to the Company and I made this further investment in the Company because the current stock price was attractive." This is especially true because with more than 20 years of R&D that produced a number of advanced combustion engine prototypes operating on a wide array of alternative fuels, our Company is ready to move towards large-scale production as soon as it raises sufficient working capital. When I consider the value of the Company, I take the following factors into consideration.
• Millions of dollars were invested into R&D over 20 years resulting in our proprietary technologies and a number of important working prototypes.
• The value of the intellectual property rights to manufacture, distribute and sublicense our patented CSRV technology is not reflected in our financial statements.
• We have received a substantial number of orders which will begin to be filled promptly after we are able to commence manufacturing operations.
• A distribution license for the territory of Canada was granted to a Canadian company for $10,000,000, with a remaining balance owed to the company of $4.8 million for the licensing fees. This licensing arrangement is expected to generate substantial orders once manufacturing commences.
• An additional distribution license for the territory covering the United States to be granted to this same Canadian company is currently in escrow. The licensing fee for the grant of this license is $50,000,000. This license would likely become active after the Company commences production.
There can be no assurance that the Company will be successful in any of the above endeavors.
Safe Harbor Statement:
This press release contains forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Please see our filings with the Securities and Exchange Commission. Our public filings with the SEC may be viewed and printed on the website maintained by the SEC at http://www.sec.gov.
Coates International, Ltd.
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SOURCE: Coates International, Ltd.