Coates International Ltd. (fka COTE)

[Hurricane_Rick]

George issued Preferred A stock so that he can maintain voting control over the company. It is not dilutive to the company; however, as explained below, the additional shares were necessary to bump up George's voting rights percentage from 85% to 87%.

Notable is that the outstanding shares have been upped from 274,530,511 after the the Q3 2009 (9/30/2009) to 275,919,661 effective 2/12/2010.

In the last 4 months or so, Coates has added 1.5 million shares to the total amount of outstanding common shares. A bit of dilution which apparently was tied to raising capital. At $1.40 (loose average) that equates to around $2.1 million. I'm not sure how much of the outstanding shares were used for other purposes - anyone who really wants to figure out the exact amounts can peruse the SEC filings. I'm only presenting the numbers here for a general idea of how much dilution occurred and how much capital was raised.

My personal commentary: It would be nice if they could use the $2.1 million to ship a generator or two to Canada.