Deal sells convertible promissory note to Auctus Private Equity Fund
By Devika Patel
Knoxville, Tenn., Nov. 18 – Coates International, Ltd. completed a $40,000 private placement of a convertible promissory note with Auctus Private Equity Fund, LLC on Nov. 14, according to an 8-K filed Tuesday with the Securities and Exchange Commission.
The 8% note is convertible into common shares at 67.5% of the average of the two lowest closing prices of the stock during the 25 trading-day period ending one trading day before conversion. The note matures in August 2015 and may be prepaid with penalties ranging from 25% to 50%.
Coates, based in Wall Township, N.J., develops spherical rotary valve systems used in piston-driven internal combustion engines.
| Issuer: | Coates International, Ltd.
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| Issue: | Convertible promissory note
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| Amount: | $40,000
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| Maturity: | August 2015
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| Coupon: | 8%
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| Conversion price: | 67.5% of the average of the two lowest closing prices of the stock during the 25-trading-day period ending one trading day before conversion
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| Call: | With penalties ranging from 25% to 50%
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| Warrants: | No
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| Investor: | Auctus Private Equity Fund, LLC
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| Settlement date: | Nov. 14
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| Stock symbol: | OTCBB: COTE
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| Stock price: | $0.02 at close on Nov. 13
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| Market capitalization: | $7.99 million
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