Coates International Ltd. (OCTPK:COTE) announced that it has entered into a securities purchase agreement with existing investor PowerUp Lending Group, Ltd. for private placement of a convertible promissory note for gross proceeds of $33,000 on February 2, 2018. The note will be issued at par. The note carries a coupon of 8% per annum and will mature on November 15, 2018. The note is convertible into common stock of the company at the conversion price, as defined, in whole, or in part, at any time beginning 180 days after the date of the note, at the option of the holder. The company has issued securities pursuant to exemption provided under Regulation D. The company has paid the expenses of $2,500.