WALL TOWNSHIP, N.J., April 5, 2011 /PRNewswire/ -- Coates International, Ltd. (OTCBB: COTE) – Coates International Ltd. (the "Company") announces a plan, which became effective on April 1, 2011, to provide new working capital from the reinvested proceeds from sales of up to one million shares of stock owned by George J. Coates, majority shareholder, President, CEO and Chairman. The shares will be sold on the open market through a registered broker-dealer under the exemption from registration provided by Rule 144 of the Securities Act of 1933. Mr. Coates has agreed to reinvest the net proceeds from these stock sales back into the Company to assist with its cash flow in return for shares of Series B Convertible Preferred Stock of the Company. Mr. Coates has also indicated a willingness to extend this program beyond the one million shares, if it is deemed appropriate at the time.
Barry C. Kaye, CFO noted that this plan will promptly provide the Company with needed working capital and underscores the commitment of George J. Coates to our future and our business plan. He also stated that investors should be careful not to interpret these insider sales as any indicator of a change in management's outlook for the Company since the proceeds are actually being reinvested.
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. By their nature, forward-looking statements and forecasts involve risks and uncertainties because they relate to events and depend on circumstances that will occur in the near future. There are a number of factors that could cause actual results and developments to differ materially from forecasted results. These risks and uncertainties include market conditions, regulatory approvals, and other risks inherent in our operations. For a discussion of these risks and uncertainties, 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.
Coates International Ltd.
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