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Oct. 16, 2012 /PRNewswire/ -- Synthesis Energy Systems, Inc. (NASDAQ: SYMX) ("SES") today announced the closing of its strategic equity investment from Shanghai Zhongmo Investment Management Co., Ltd. ("Zhongmo") of
$6.27 million for 4,177,335 shares of SES common stock. In addition, SES has also received the remaining
$596,090 for the remaining 397,393 Hongye shares. These transactions complete the combined
$15.5 million strategic investment from Hongye and Zhongmo announced
June 18, 2012, for a total of 10,352,428 shares.
Robert Rigdon, president and CEO, stated, "The completion of the Zhongmo transaction combined with the Hongye transactions provides SES with significant new resources to advance our business interests in
China. We view these transactions as a strong endorsement of our gasification technology and the superior economics our technology affords. We have already begun working with these important new strategic partners to accelerate our business in
China in order to deliver positive financial results as quickly and effectively as possible."
After giving effect to the closings, Hongye holds 9.9% and Zhongmo holds 6.7% of the total shares outstanding of SES.
Crystal Vision Energy acted as management advisors to SES, Roth Capital Partners acted as financial advisors and King & Wood Mallesons (PRC) and Porter Hedges LLP acted as legal advisors to SES on these transactions.
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) 579-0600.0600.
Zhongmo is a private company principally engaged in providing financial and management consulting and advisory services. Zhongmo specializes in providing consulting services to Chinese enterprises looking for investment and financing solutions domestically as well as abroad.