HOUSTON, Sept. 4, 2012 /PRNewswire/ -- Synthesis Energy Systems, Inc. (NASDAQ: SYMX) ("SES") today announced a progress update on its pending equity investments from Hongye International Investment Group Co., Ltd. ("Hongye") and Shanghai Zhongmo Investment Management Co., Ltd. ("Zhongmo").
The China Securities Regulatory Commission (CSRC), an agency that functions similarly to the U.S. Securities and Exchange Commission, has recently approved the agreements necessary to proceed with the Chinese process to fund the previously announced $15.5 million in combined equity investments from Hongye and Zhongmo. The required Chinese and foreign custodial bank accounts have been opened for the Hongye investment and are in the process of being opened for the Zhongmo investment. The Hongye funding into the Chinese custodial account has begun and the remaining steps in the funding process include foreign currency conversion and completion of the funds transfers.
Under the terms of the previously announced agreements, Hongye will receive 6,175,093 newly issued shares of common stock of SES at closing, representing an approximately 9.9% interest in SES, and Zhongmo will receive 4,177,335 newly issued shares of common stock, representing an approximately 6.7% ownership interest in SES. The purchase price per share is $1.50 for total proceeds of approximately US$15.5 million to SES.
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 and SRS, please visit www.synthesisenergy.com or call (713) 579-0600. About Hongye Hongye is a diversified group and is one of the top 100 private enterprises in Inner Mongolia. Hongye operates in three major business areas - energy and natural resources, finance and bio-pharmaceuticals. The major coal mine resources of Hongye are located in Wuhai City of Inner Mongolia.