Coates International, Ltd. (OTCBB: COTE) - Coates International Ltd. (the "Company") is pleased to release this update to our stockholders.
The equity line of credit facility agreement with Dutchess Capital covering the sale of up to $20 million of our common stock has been executed and the related initial registration statement has been filed with the Securities and Exchange Commission.
Progress continues to be made with the undertaking to merge with the Chinese engine and generator manufacturer (SWT). The Company has put in place its proper representation in China with a prominent local law firm and independent accountants to assist the Company in carrying out the due diligence procedures and other merger transaction related activities.
Selection of Coates as the Project Manager/Supplier for construction of the turn-key power plant project for the Dubai World Business Group has been approved. A deposit of $40,000,000 USD is to be made by the project sponsors before Coates begins the project. This deposit represents 10% of the total cost of the project. Management has been invited to a planning meeting in the Middle East, after which the definitive project documents will be prepared and executed.
Almont Energy of Alberta, Canada has made an additional payment to the company bringing total payments received by Coates to $5,150,000 USD to date, leaving a balance of $4,850,000 USD. The Company expects to ship more industrial electric power natural gas CSRV Gen Sets within the next two weeks to Alberta, Canada.
In May 2011, Black Swan Capital Group, Inc. informed the Company that it had completed its due diligence on the Company and had obtained approval for funding the $10 million working capital loan to Coates from its Investment Committee and/or its investors and issued a written, binding commitment to provide the Loan. The Company has since determined that the likelihood of success of obtaining the Loan from Black Swan, in spite of having received such commitment is remote. The Company intends to pursue all legal remedies and courses of action available to it in view of management's opinion that Black Swan is in breach of its Commitment Letter to provide the Loan.
The Company is working with other financial funding sources in an effort to acquire additional working capital to ramp up production.
Management is satisfied with the success in continuously manufacturing the Gen Sets for Almont. In anticipation of gaining access to manufacturing facilities and skilled employees to produce CSRV products in China, Management is planning to be in a position to promptly commence full production in China of 6-cylinder, V12 and V16 industrial CSRV engines and natural gas generators.
In response to inquiries received from stockholders, the Company has no plans to change the (COTE), ticker symbol in the foreseeable future. Coates' common stock may, however, be listed on other appropriate stock exchanges in other parts of the world after successful completion of the merger transaction with SWT.
About Coates International, Ltd.: Coates has been developing over a period of more than 15 years a patented spherical rotary valve CSRV Internal Combustion Engine invented by George J. Coates and his son Gregory. Our public filings with the SEC may be viewed and printed on the website maintained by the SEC at http://www.sec.gov
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