Attached files
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| 8-K - FORM 8-K COATES INTERNATIONAL - COATES INTERNATIONAL LTD \DE\ | form8k.htm |
Exhibit
99.1
Source:
Coates International Ltd.
MAJOR CHANGES IN LICENSING THE COATES
CSRV ENGINE CREATES POSITIVE ADVANTAGES FOR THE COMPANY.
Tuesday,
March 10, 2010-For Immediate Release
WALL TOWNSHIP, NJ. – (PR Newswire) -
Coates International, Ltd. (OTCBB: COTE)
Coates
International, Ltd. (the “Company” or “Coates”) has consented to the assignment
of its Canadian License and the rights to its US License Agreements, subject to
the provisions of the Escrow Agreement with Well to Wire Energy, Inc. (“WWE”) to
Almont Energy Inc, (“Almont”) a privately held, newly formed independent third
party entity based in Alberta, Canada. Almont has made two payments to Coates in
February 2010 totaling $700,000 as a prerequisite condition to our consent to
the assignment.
Coates
has also received a deposit from Almont towards the first shipment of engines
expected to be ready for shipment in April 2010. Almont will deliver and install
these units.
Almont’s
management advised us that the new company was formed for the sole purpose of
pursuing its business plan to deploy the Coates Spherical Rotary Valve (“CSRV”)
system technology. This decision was based on a number of factors, which
included:
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1.
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Almont
management’s expectation is that it is more advantageous to separate the
“clean energy” business from the other WWE business activities and that
doing so, creates a single focus on the Coates CSRV system technology
business plan.
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2.
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Almont
management believes that as a single focused company it will be able to
facilitate the process of funding its
operations.
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A new
management team has been installed at Almont to commercialize the CSRV system
technology. The management of Almont has stated that it intends to follow and
execute the original business plan of WWE very closely.
Almont
stated that it was initially capitalized by the management group together with
funds raised from a small group of high net worth investors with a track record
of proven business and financial success.
In
connection with the assignment of the Canadian License and the rights to the US
License, Almont has also assumed all of the obligations set forth in the Escrow
Agreement between the Company and WWE, with the following
modifications:
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·
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The
remaining unpaid balance of the Release Payment is approximately $6
million and will be paid expeditiously. Provided that Almont remits this
entire unpaid balance to the Company on or before the Release Payment
Date, the US License will be released from escrow and granted to Almont.
Almont is required to remit to the Company 60% of all monies it raises
from future equity or debt transactions, exclusive of proceeds from
equipment purchase financing transactions, until the Release Payment is
paid in full.
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·
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Almont
has also become obligated to pay the $49 million balance of the US License
Fee to the Company. Payment shall be made quarterly in an amount equal to
5% of Almont’s quarterly net profits. In addition, Almont is required to
remit a portion of the proceeds it receives from equity or debt
transactions, exclusive of equipment financing transactions to the Company
until the entire balance of the US License Fee is paid in full. However,
the entire $49 million licensing fee is required to be paid on or before
February 19, 2015.
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The
business plan of Almont assumes the purchase of a substantial number of CSRV
units over the next 5 years. Almont’s purchase of CSRV units from the Company
will be made by way of standard purchase orders, issued based on market and
customer demand. Over the 5-year period, Almont anticipates that the volume of
total purchases from the Company will be similar to, or potentially exceed the
quantities contemplated in our previous arrangement with WWE. Almont plans to
finance its purchases from cash flow and by way of project and/or equipment
financing, proceeds from issuance of equity or corporate debt instruments and
conventional bank financing.
Fax:
732-449-7736
Or
Email:
info@coatesengine.com
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. The CSRV system is adaptable to combustion
engines of many types. This technology is currently adapted to a number of
practical applications, including industrial generators powered by engines
incorporating the CSRV technology and designed to operate on flare-off gas from
oil wells, landfill gas and raw natural gas. The Company is actively engaged in
preparing for the commencement of manufacturing of products utilizing this
technology.
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.
Contact:
Coates
International, Ltd.
Alicia
Ansbach, 732-449-7717
info@coatesengine.com This
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