WALL TOWNSHIP, N.J., June 14, 2012 /PRNewswire/ -- Coates International, Ltd. (NASDAQ OTC BB: COTE) –Coates International Ltd. (the "Company") has been advised that the State of Oklahoma has changed its incentive program and accordingly, has revised the package of incentives it is prepared to make available as an inducement to establish manufacturing operations within Oklahoma. Although the Company received this update today, it is dated October 25, 2011. The revised program is a ten-year incentive package from the Department of Commerce which provides us with the option to qualify for the Quality Jobs Cash Incentive package which could amount to $43,040,015 or the Investment/New Jobs Tax Credit package which could amount to $63,460,015. These incentives are earned based on the number of employees hired and the amount of investment in capital expenditures, inventory and cost of goods sold within Oklahoma. The scope of the Coates Oklahoma Engine Manufacturing, Ltd. ("Coates Oklahoma") operations established in Oklahoma will be scaled down to be consistent with the revised incentive package.
The Company has sublicenses in place which provide for license fees that are due currently of $5.8 million and additional license fees of $49 million. These sublicenses will begin to generate revenues and the Company will begin to receive the license fees after the CSRV natural gas CNG-LNG industrial engine generators are operating in the field and are being produced and delivered in sufficient quantities.
The Company has available to it a $20,000,000 USD Equity Line of Credit with Dutchess Opportunity Fund II, LP ("Dutchess") with a remaining unused portion of $19,700,000. This line enables to Company to receive net proceeds from sales of its common stock by Dutchess. The Company has also received an irrevocable Letter of Credit for $30,000,000 which must be accepted by a Commercial Bank as collateral for a loan to the Company before the funds can be utilized.
Coates Oklahoma Engine Manufacturing, Ltd. has estimated that the potential number new jobs created in Oklahoma to be approximately 300 in the first year growing to approximately 800 in the third year.
Management is presently reviewing its Coates Oklahoma business plans and intends to consider smaller sights for its manufacturing and production operations.
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, LLC
SOURCE Coates International Ltd.