WALL TOWNSHIP, N.J., April 26, 2012 /PRNewswire/ -- Coates International, Ltd. (NASDAQOTCBB: COTE) – Coates International, Ltd. (the "Company") has received an irrevocable, non-recourse unconditional letter of credit for $30,000,000 USD (Thirty Million Dollars) which it intends to use as collateral for a new loan facility. This loan would provide the necessary working capital to enable the Company to ramp up production in the United States. The Company intends to manufacture its CSRV industrial, natural gas, electric power engine generators for the oil and gas industry. The letter of credit must be accepted by a bank or funding institution as collateral for a loan facility. There can be no assurances that it will be accepted.
Management believes that, if accepted, the prospective loan facility combined with the Dutchess Opportunity Fund, LP equity line of credit for $20,000,000 USD (Twenty Million Dollars) that the Company secured in June 2011, may provide sufficient working capital to fulfill the Company's current business plans.
The Company is continuing discussions with a number of states to identify the overall optimal package of incentives and location for establishing its manufacturing and assembly plant.
The Company has received projections from its licensed distributor in Alberta, Canada estimating its requirements to be more than 11,000 CSRV natural gas industrial systems.
The Company's distributor in Alberta, Canada has advised that once the CSRV natural gas engine generators start shipping in larger numbers it will be in a position to pay off the remaining balances for the Escrow Release Payment of $5,847,000 and the United States license of $49,000,000.
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.
About Coates International, Ltd.: Coates has been developing over a period of more than 15 years a patented spherical rotary valve CSRV Internal Combustion Engine invented by George J. Coates and his son Gregory.
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.