Coates Signs Placement Agent Agreement to Target Institutional Investors
Coates International, Ltd. has entered into a placement agent agreement with Stonegate Securities, Inc. to act as its placement agent.
Stonegate has a demonstrated record for assisting companies raise new capital from institutional type investors. Barry C. Kaye, Director and CFO, stated, "This opportunity to become a viable participant in the institutional investor capital markets represents a very positive way to move into the New Year. We will initially be seeking approximately $10-$30 million of new capital during the first quarter of 2008 to provide us with sufficient working capital for our enthusiastic plan to ramp up production of our Coates Spherical Rotary Valve (CSRV) engine generators.
"Our marketing strategy is to first install our CSRV engine generators in the field, thereby enabling us to pursue a branding program designed to achieve worldwide recognition of our CSRV technology. This in turn will enable us to attract new opportunities for licensing our technology. We believe that being a participant in the institutional investor capital markets is also an important stepping stone for carrying out our longer term business plans in an orderly and timely manner. With the new low emission and fuel consumption legislation signed by President Bush, management believes the time has come for the implementation of the Coates CSRV Engine on a worldwide scale."
The agreement is for an initial ninety (90) day period in which Stonegate shall be the Company's exclusive placement agent, and thereafter the agreement shall be non-exclusive until cancelled by either party on ten (10) days written notice. During the Exclusivity Period, Stonegate has the exclusive right to identify for the Company prospective purchasers in one or more placements of debt and/or equity securities to be issued by the Company, the type and dollar amount being as mutually agreed to by the Parties. After the Exclusivity Period as the non-exclusive placement agent to the Company, Stonegate will have the non-exclusive right during the Contract Period to identify for the Company prospective Purchasers in one or more Placements of Securities, the type and dollar amount being as mutually agreed to by the Parties.