Coates International Ltd (OTCMKTS:COTE) stated that it started receiving components and parts for the assembly of its industrial natural gas generator. All components and parts are made in the U.S. George J. Coates, the President and CEO said that it take patience, funds and time to establish production of industrial natural gas generators sets. The company is pleased with the assembly progress made till this time. Many firms in the U.S. are quite helpful and the management is working in association with them.
Coates International said that a large quantity of components and parts will be manufactured in California and other states. The management expects all components and parts to arrive in the coming 12 weeks. After that quality control will take place and then all other activities including assembly and test running, etc. Once all these processes are completed then the company will review existing orders and assign the possible delivery dates.
During that time, Coates International Ltd (OTCMKTS:COTE) will be into production phase of the parts. There will be need of additional staff and a bigger facility for expansion into production. The management intends to keep the R&D Plant separate from the company’s production process after the first ten or twenty units are produced.
The stock decline
Coates International CEO said that many of the stockholders contacted the management to know about the stock price decline in the market. The company investigated the matter and discovered that a deferred stock deal that the Company accomplished in 2014, with KBM Worldwide, Inc., was the reason behind stock decline. After six months of transaction, they converted it to company stock following which the stock price dropped.
The company decided not to enter into another transaction with KBM. In last trading session, the stock price of Coates International declined 33.33% to close the trading session at $0.00180 on share volume of 26.57 million,