Coates International Ltd (OTC:COTE) is an engineering company developing technologies to better the conventional combustion engine. The price began to move up around Apr. 28 when the company announced a possible merger.
On Tuesday COTE issued an update on the merger progress. After the 12% gain that day, yesterday the price moved up another 11.11% to close at $0.50 on 126 thousand shares.
The PR informed that COTE and S.W.T. (the potential merger company) had agreed to proceed with their merger plans. S.W.T. is a China-based generator set manufacturer and according to George J. Coates, President and CEO of COTE, the merger would be good for both companies and for COTE shareholders.[BANNER]
There are no dates for the potential closing of the merger. There are also no details about the possible conditions, but the announcement states that both companies are “…fully engaged with the process of expediting the merger.”
COTE recently received a commitment letter from Black Swan Capital Group for a $10 million loan. Funding, which could be of great use for the company, keeping in mind some of the numbers in their most recent financial report:
- $25 thousand in cash
- $519 thousand total current assets
- $3.6 million total current liabilities
- no revenue reported for Q1
- $543 thousand net loss
Whether the merger goes through and the company manages to realize its plans remains to be seen, but the price action seems to suggest some people believe it might.
