WALL TOWNSHIP, NJ--(Marketwired - Mar 10, 2015) - Coates International, Ltd. (OTCBB: COTE) (the "Company") Stockholders Update. The Company is providing an update of its progress since the $100,000,000 USD non-exclusive distribution license for the Western Hemisphere was finalized with Renown Power Development, Ltd. ("Renown"), a China-based distribution company, and the 150 KW Coates CSRV industrial electric power natural gas generator set at Coates Power, Ltd. ("Coates Power") was demonstrated for the Government of The People's Republic of China, including other company executives and financiers as part of the process leading up to finalizing the license agreement. The demonstration tests of the Coates CSRV industrial natural gas electric power generator in China operated flawlessly on all occasions.
As collateral for payment of the US$100 million sublicensing fee, both Coates Power and Renown have placed shares of their capital stock representing a 25% ownership interest of each company into an escrow account for the benefit of Coates International, Ltd. These shares of stock will be released from escrow and revert back to Coates Power and Renown only after the US$100 million sublicensing fee is paid in full.
The Company is pleased to report that parts and components are being prepared for shipment to Coates Power, Ltd. in China where the initial Coates CSRV industrial natural gas electric power generator sets will be manufactured. After this first production run of the Coates CSRV generator sets is completed, it is expected that most parts and components will be manufactured in China.
Arrangements are in place and Chongquing Longyuan Power Equipment Co. Ltd. is manufacturing skids, radiators, generators, switchgears and controls.
Chogqing Cummins Engine Co. Ltd. is supplying engine blocks.
These production parts are already in the process of being delivered to Coates Power for manufacturing of the Coates CSRV generator sets in China.
The Coates CSRV engines are multi-fuel systems with a proprietary design that eliminates 2,700 parts and components from the standard poppet valve engine and replaces them with only two CSRV moving shaft assemblies. These shaft assemblies do not require any engine oil. The design is believed to be one of the most green engine technologies in the world. The engine design is adaptable to operate on alternative fuels such as CNG - LNG, propane, flare-off gas, bio-gas or hydrogen in combination with a small amount of diesel fuel.
Coates International, Ltd. President and CEO, Mr. George J. Coates, comments: "Many stockholders have contacted the company about the trading price of the stock. We have no control over the price of our stock on the market. The Company is not selling shares of its stock. Shares of our stock can only be acquired by making purchases from existing stockholders, generally through a broker-dealer. Please do not contact the Company regarding the trading price of the stock. We are not permitted to speak with individual stockholders on this topic."
There can be no assurance that the Company will be successful in any of its endeavors.
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.