Coates International Ltd. (OTCMKTS:COTE) Suffers A Correction
Coates International Ltd. (OTCMKTS:COTE) saw five days of uninterrupted ascent before it was cut down to size last Friday.
As we’ve said on multiple occasions in the past, it was just a matter of time for something like this to happen. The only wondrous thing in the present situation is that the wave of hype that managed to push COTE up the charts lasted this long. However, now that it appears to have dissipated, COTE may be in serious trouble. Why?
Because the ticker doesn’t seem to have anything else keeping it afloat. For one, its financials certainly aren’t:
- Cash – $72 thousand
- Total Current Assets – $190 thousand
- Total Current Liabilities – $7.1 MILLION
- Total Revenues- $5 THOUSAND
- Net Loss – $2.8 million
And while the positive things one may find in COTE‘s reports are very sparse, the red flags that crop up once due diligence is done are certainly not few and far between.
The latest atrocity committed to COTE investor value was documented in its most recent 8-K. It announced a deal with Vis Vires Group, Inc. for funding so toxic as to convert at “61% multiplied by the average of the three lowest closing bid prices during the ten trading-day period ending one trading day prior to the date of conversion”.
Investors should really take note of such details, instead of focusing only on the boastful optimism that fills the press releases, especially when dealing with dubious OTC Markts pinksheets penny stock companies.
