stay long, that is all good stuff. Where I am confused though, is Coates is selling license agreements, for others to manufacture and distribute, goods which he hold the patent to.
Wall Township, NJ – (Marketwired – March 10, 2015) Coates International, Ltd. (OTCBB: COTE) (the “Company”) Stockholders Update. The Company is providing an update of its progress since the $100,000,000 USD non-exclusive distribution license for the Western Hemisphere was finalized with Renown Power Development, Ltd. (“Renown”), a China-based distribution company, and the 150 KW Coates CSRV industrial electric power natural gas generator set at Coates Power, Ltd. (“Coates Power”) was demonstrated for the Government of The People’s Republic of China, including other company executives and financiers as part of the process leading up to finalizing the license agreement. The demonstration tests of the Coates CSRV industrial natural gas electric power generator in China operated flawlessly on all occasions.
As collateral for payment of the US$100 million sublicensing fee, both Coates Power and Renown have placed shares of their capital stock representing a 25% ownership interest of each company into an escrow account for the benefit of Coates International, Ltd. These shares of stock will be released from escrow and revert back to Coates Power and Renown only after the US$100 million sublicensing fee is paid in full.
The Company is pleased to report that parts and components are being prepared for shipment to Coates Power, Ltd. in China where the initial Coates CSRV industrial natural gas electric power generator sets will be manufactured. After this first production run of the Coates CSRV generator sets is completed, it is expected that most parts and components will be manufactured in China.
Arrangements are in place and Chongquing Longyuan Power Equipment Co. Ltd. is manufacturing skids, radiators, generators, switchgears and controls.
Chogqing Cummins Engine Co. Ltd. is supplying engine blocks.
These production parts are already in the process of being delivered to Coates Power for manufacturing of the Coates CSRV generator sets in China.
Now Coates is under the gun to deliver products being manufactured by Coates in NJ. See the following:
Wall Township, NJ – (Marketwired – May 20, 2015) Coates International, Ltd. (OTC PINK: COTE) (the “Company”) is pleased to announce that it has now started the production phase of operations here in the USA. We have established an assembly line in the company headquarters plant in New Jersey. Engines and natural gas industrial gen sets are being assembled. The first shipment will be to China.
I am just not understanding this... How did this deal flip from thanks for the cash, now you can build your own, into now you need to manufacture these things in the U.S., then ship them to us in China for us to distribute in the western hemisphere before we pay you? What am I missing here?
