A day after getting abundant traction from the investors, Coates International Ltd (OTCMKTS:COTE) landed in the red zone during the previous session. The company’s sudden plunge despite announcing $50 million worth of receipt of orders indicated the apprehensions that investors hold about the validity of the fresh orders. The company had earlier released a press note, in which it updated the stakeholders about receipt of four orders worth $50,486,200.
Alongside briefing about the four new orders, Coates International Ltd (OTCMKTS:COTE) also took an opportunity to highlight its progress in manufacturing of 150 KW CSRV. The company stated that the production of 150 KW CSRV natural gas electric power generators is underway at its headquarters located in New Jersey, USA.
The company mentioned that it sees a growing demand of these natural gas generators along with CSRV stand-alone 35 KW propane gen sets, mainly from the UAE region. By looking at the increasing demand, the company is also mulling to increase its total number of skilled workers at the New Jersey plant. At the same time, the company is also aggressively looking for a suitable production plant in the areas around New Jersey in order to meet the growing demand by expanding its production operations.
Some underlying concerns
Coates International Ltd (OTCMKTS:COTE)’s new update put the investors’ concerns at rest but only for a short while. Its financial standing exhibited in its latest quarterly report point otherwise. The company’s cash balance and current assets are around $72,622 and $190,023 respectively. The current liabilities of the company stand at $7,149,211 while its revenues worth $4,800 are no match to its net loss of $2,814,769. Over and above this, the company is overlooking to a mortgage repayment of $1.4 million, which is due to mature in July this year.
The stock of Coates International Ltd (OTCMKTS:COTE) closed nearly 14% lower at $0.0123 on Thursday, while the day witnesses a total volume of 19.19 million shares.