Update
Any thoughts on what this means?
Feb-2010
Regulation FD Disclosure
ITEM 8.01. OTHER EVENTS AND REGULATION FD DISCLOSURE
On February 12, the board of directors agreed to the issuance of 4,001 shares of Series A Preferred Stock of the Corporation (representing 40,010,000 voting shares) to George J. Coates in order to restore the original percentage of all votes originally held by the Coates Family at January 1, 2005. The Coates Family shareholdings has been diluted as a result of various issuances of new shares of stock in connection with raises of new equity capital during the period from January 1, 2009 to February 12, 2010. As a result, they have requested that as a prerequisite condition to issuing any further shares to new investors and/or lenders, that George J. Coates be awarded shares of the super-majority voting shares of the Corporation's Series A Preferred Stock, $0.001 par vale per share in order to restore its original percentage of all votes that it held at January 1, 2005. The Series A Preferred Stock does not share in any dividends and does not have any liquidation rights.
In order to enable the Corporation to raise urgently needed working capital, the board of directors deemed it advisable and consented to authorize the issuance of additional shares of Series A Preferred Stock to the George J. Coates to restore the Coates Family's voting percentage upon any future issuance of new shares of the Corporation's common stock as a result of a sale or conversion of securities into common stock (except that no Series A Preferred Stock shall be issued to George J. Coates to restore the Coates Family voting percentage in connection with any new shares of common stock issued upon sale or conversion of the Corporation's securities issued pursuant to public offerings by the Corporation).
The issuance of shares of Series A Preferred Stock to George J. Coates does not have any effect on the shares of dividends or liquidation value of the holders of our common stock. However, based on 275,919,661 shares of common stock outstanding as of February 12, 2010, the voting rights of the holders of our common stock will be affected as follows:
Percentage of voting rights held: George J. Coates All other shareholders As of February 12, 2010 85. 73% 14.23%
Immediately after issuance of the 87.11% 12.89% Series A Preferred Stock
AI
