WALL TOWNSHIP, N.J., May 15, 2012 /PRNewswire/ -- Coates International, Ltd. (NASDAQ OTCBB: COTE) – Coates International Ltd. (the "Company") would like to provide its shareholders with the following update:
- The Company is currently in discussions with four different states, and has requested a firm commitment from each, for the best package of business and tax incentives and any start-up funding that could be made available to the Company. The Company will also consider location and logistics in arriving at a decision on the best location to set up its production operations. The Company has requested a minimum of $150,000,000 start-up funding from three of these states and such states have indicated that any such start up funding would be raised through a state bond offering. At this point, the Company has not received a commitment for such start-up funding. Upon receiving any such commitment, the Company would endeavor to undertake an offering to raise new capital to match the funds from a state bond offering. There can be no assurance that the Company will receive a commitment for such state funding, that the state bond offering will be successful or that the Company could be successful in raising matching funds.
- The Company's Canadian sub-licensee owes $4,847,000 USD to us for the Canada sub-license fees and R&D agreement, plus an additional $1,000,000 deposit on the US sub-license agreement for a total of $5,847,000 currently due. In addition, the US sub-license agreement requires a sub-license fee to be paid to the Company in the amount of $49,000,000. These amounts due to the Company will start to be paid to the Company once the Company starts up production and begins fulfilling orders for its CSRV natural gas electric power engine generators.
- The Company has a registration statement that is currently effective covering a $20,000,000 equity line of credit with Dutchess Opportunity Fund II, LP. There remains approximately $19,500,000 under this line.
- A $30,000,000 irrevocable, non-recourse, unconditional letter of credit was received by the Company which is in force until March 28, 2015. The Company is attempting to identify a lender that will establish a line of credit collateralized by this letter of credit. There can be no assurance that the Company will be successful in obtaining such a secured line of credit.
- A subsidiary company has been established for the purpose of conducting all manufacturing operations once the Company decides on the optimal location for the production plant.
- The Company will be announcing dates for an open house it is planning to host for its stockholders and visitors at its New Jersey plant. Advance reservations will be required.
The Company believes that ramping up production will create a number of new quality jobs in the United States. Management believes our advanced CSRV technology provides competitive advantages by lowering the consumption of fossil fuels, operating on a wide range of alternative fuels and lowering harmful emissions.
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. Investor Relations Contact:Equiti-trend Advisors, LLCPhone: 800-953-3350E-Mail: email@example.com THE COATES OFFICIAL NEWS WEBSITE www.coatesengine.com www.mostadvancedengine.com SOURCE Coates International, Ltd.