{"id":6063,"date":"2015-06-25T13:12:49","date_gmt":"2015-06-25T13:12:49","guid":{"rendered":"\/?p=6063"},"modified":"2015-06-25T13:39:25","modified_gmt":"2015-06-25T13:39:25","slug":"coates-international-ltd-otcmktscote-surges-again","status":"publish","type":"post","link":"\/articles\/coates-international-ltd-otcmktscote-surges-again\/","title":{"rendered":"Coates International Ltd. (OTCMKTS:COTE) Surges Again"},"content":{"rendered":"\n

Coates International Ltd. (OTCMKTS:COTE<\/a>) managed to jump 38.89% up the charts yesterday, after it announced that another company is to buy $20 million wort of its stock. <\/p>\n

Evidently Southridge Partners II LP, a Delaware limited partnership is willing to buy said $20 MILLION worth of COTE<\/a><\/strong> stock over the period of three years, at a price of “94% of the lowest volume weighted average price of the stock on the ten trading days that comprise the defined pricing period<\/em>”.<\/p>\n

Investors jumped at COTE<\/a><\/strong> stock immediately after seeing the news – that much is evident by looking at the charts. But is that enthusiasm really warranted?<\/p>\n

True enough, this arrangement seems to be a pretty good deal, especially in comparison with COTE<\/a>‘s <\/strong>previous finding endeavors. Suffice it to say that COTE<\/a><\/strong> has issued, and continues to issue, outrageous amounts of shares at a discounts ranging from 30% to 40%. However, investors should duly note the fact that this will dilute the stock even further.<\/p>\n

$20 million can buy a lot of COTE<\/a><\/strong> stock. So if COTE<\/a> share prices remain the same as they are now, this purchase will leave Southridge in possession of 1.3 BILLION shares of the company’s common stock just in the first year – and that’s if COTE<\/a> manages to retain its hype-induces, explosive gains. To put things into perspective – as of May 8, 2015, COTE<\/a><\/strong> had 713 million shares of its common stock issued and outstanding.<\/p>\n

True enough, COTE<\/a><\/strong> certainly needs the money Southbridge can provide it with. Its latest financials looked pretty grim:<\/p>\n