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Dec. 7, 2011 /PRNewswire/ -- Synthesis Energy Systems, Inc. (NASDAQ: SYMX) ("SES")
today announced an update on the
$83.8 million strategic equity investment into SES by China Energy Industry Holding Group Co. ("China Energy"). Zhongjixuan Investment Management Company Ltd. ("ZJX") and Yima Coal Industry Group Co., Ltd. ("Yima") have continued to make progress in completing by
December 31, 2011 the necessary documents and agreements for Yima's investment into China Energy. Once the documents and agreements are completed, they will be sent to the relevant Chinese authorities so that ZJX and Yima can obtain the necessary approvals for the investment and all parties can move to closing. Progress on the investment has been slowed due in large part to the recent coal mine accident affecting one of Yima's subsidiaries.
"While we cannot currently predict the final timing of completing the government approvals process and the closing of this transaction, based on our active discussions with ZJX and Yima we remain confident that the agreement with China Energy to make this substantial strategic equity investment into SES will close. We have also been working closely with ZJX to advance important business initiatives in
China which will be essential to our future joint collaboration as well as the commercial restructuring intended to improve our Zaozhuang joint venture project. This transaction is a major step forward in our efforts to finance the continued commercialization of our U-GAS® gasification technology in
Robert Rigdon, President and CEO.
About Synthesis Energy Systems, Inc.
SES provides technology, equipment and engineering services for the conversion of low rank, low cost coal and biomass feedstocks into energy and chemical products. Its strategy is to create value through providing technology and equipment in regions where low rank coals and biomass feedstocks can be profitably converted into high value products through its proprietary U-GAS® fluidized bed gasification technology, which SES licenses from the Gas Technology Institute. U-GAS® gasifies coal cost effectively, without many of the harmful emissions normally associated with coal combustion plants. The primary advantages of U-GAS® relative to other gasification technologies are (a) greater fuel flexibility provided by the ability of SES to use all ranks of coal (including low rank, high ash and high moisture coals, which are significantly cheaper than higher grade coals), many coal waste products and biomass feed stocks; and (b) the ability of SES to operate efficiently on a smaller scale, which enables the construction of plants more quickly, at a lower capital cost, and, in many cases, in closer proximity to coal sources. SES currently has offices in
Houston, Texas, and
Shanghai, China. For more information on SES, visit
www.synthesisenergy.com or call (713) 579-0600.
This press release includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical fact are forward-looking statements. Forward-looking statements are subject to certain risks, trends and uncertainties that could cause actual results to differ materially from those projected. Among those risks, trends and uncertainties are the early stage of development of SES, its estimate of the sufficiency of existing capital sources, its ability to successfully develop its licensing business, its ability to raise additional capital to fund cash requirements for future investments and operations, its ability to reduce operating costs, the limited history and viability of its technology, the effect of the current international financial crisis on its business, commodity prices and the availability and terms of financing opportunities, its results of operations in foreign countries and its ability to diversify, its ability to maintain production from its first plant in the ZZ joint venture, its ability to complete the expansion of the ZZ project, its ability to obtain the necessary approvals and permits for its Yima project and other future projects, the estimated timetables for achieving mechanical completion and commencing commercial operations for the Yima project, its ability to negotiate the terms of the conversion of the Yima project from methanol to glycol, the sufficiency of internal controls and procedures and the ability of SES to grow its business as a result of the China Energy and Zuari transactions as well as its joint venture with Midas Resource Partners. Although SES believes that in making such forward-looking statements its expectations are based upon reasonable assumptions, such statements may be influenced by factors that could cause actual outcomes and results to be materially different from those projected. SES cannot assure you that the assumptions upon which these statements are based will prove to have been correct.