Coates International Ltd. would like to provide its shareholders with the following update:
The Company intends to continue to draw upon its equity line of credit with Dutchess Opportunity Fund II, LP to infuse new working capital. In the last two months, the Company has drawn down $250,000 of the total line amount of $20 million. The Company may draw from this line as much as $500,000 during each five day stock trading period, however, in order to avoid undue pressure on the stock price, the Company is carefully managing the pace at which it draws down from this equity line of credit.
The Company continues to test its electric power CSRV generators to ensure that it has resolved a previously reported problem with cracks in the lower engine heads. Based on this continued testing, management believes that the CSRV technology design engines and generators are ready for full production, which can commence upon raising sufficient additional working capital.
The Company is working with a number of potential sources to secure such additional working capital, however, there can be no assurance that it can obtain access to such additional working capital to enter into production. This working capital is needed to procure inventory and components and to cover payrolls for factory workers.
The Company is in initial discussions with three potential new customers that have expressed interest in purchasing and/or licensing CSRV technology products. Arrangement are currently being made to demonstrate the technology at the Company's facilities. There can be no assurance that these discussions will result in definitive agreements with these prospective customers in the near term, or at all.
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. Our public filings with the SEC may be viewed and printed from the website maintained by the SEC at http://www.sec.gov.
