|By Marketwired .||
|June 10, 2014 02:15 PM EDT||
WALL TOWNSHIP, NJ -- (Marketwired) -- 06/10/14 -- Coates International, Ltd. ("the Company") (OTCQB: COTE)
The Company has achieved an important milestone in its continuing negotiations with a group of three Chinese companies regarding the purchase of a non-exclusive license to distribute Coates' CSRV® engines and generators throughout the Western Hemisphere. Today, the Company received written confirmation that the license fee for this non-exclusive license of $100,000,000 USD has been agreed to by the parties. The Company is in the process of drafting the license agreement and will require an initial deposit on the license from the Chinese Group.
Mr. Coates stated: "We are very pleased with the prospect of entering into a non-exclusive license that will enable commencement of the manufacturing of our products in China where production capacity and experienced large manufacturing companies will be getting our products into the marketplace without the necessity for us to raise a substantial amount of start-up working capital. In addition, should this transaction be consummated, the working capital from the licensing fee will open up new opportunities for Coates International going forward."
If finalized, Coates management will be responsible for assisting with the establishment of production operations in China. The Company estimates a six to nine month start-up period before shipments from China can commence. Coates representatives would be dispatched to China to conduct training, oversee operations, quality control and running and testing of products prior to distribution to our customers.
There can be no assurance that the Company will be successful in consummating this license agreement.
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.