Coates International Ltd. (COTE) in Merger Talks with S.W.T. of China

QualityStocks would like to highlight Coates International Ltd. (OTCBB: COTE). The company was formed for the purpose of researching, patenting, and manufacturing technology associated with a spherical rotary valve system for internal combustion engines. The Coates Spherical Rotary Valve System (CSRV) represents a revolutionary departure from the conventional poppet valve. It changes the means of delivering the air and fuel mixture to the firing chamber of an internal combustion engine and of expelling the exhaust produced when the mixture ignites.

In the company’s news yesterday,

Coates announced that company executives recently met with executives from S.W.T. of China in Alberta, China, to discuss a merger between the two entities.

S.W.T. is a major industrial engine and generator manufacturer in China with more than 2,000 skilled production workers that produce more than 80,000 units per year, as well as other products. Coates CEO and President George J. Coates and James Pang, the company’s exclusive liaison agent to China, met with key players from S.W.T. last week to reach an agreement to combine forces and merge the companies.

“I believe that significant synergies will be created by this merger, including this being the quickest path for achieving mass production of the Coates CSRV Industrial Electric Power Natural Gas Generators and it should be considered as a turning point that will benefit Coates International, Ltd., its shareholders and S.W.T. of China,” Coates stated in the press release.

During the visit to Alberta, S.W.T. engineers inspected the Coates Industrial Natural Gas CSRV Generators. According to today’s press release, engineers indicated that they were fully satisfied with the performance and emission results.

The companies are moving forward with additional talks to put the merger into motion.

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