Hedge Fund Manager John Paulson Buys 10 million shares of Synthesis Energy SystemsSynthesis Energy Systems, Inc., a development stage energy and gasification technology company, has secured investment from a hedge fund manager John Paulson.
Paulson bought 10 million shares of Synthesis Energy Systems on April 14, according to GuruFocus Real Time Picks. The holding represents 11.7% of the company’s shares outstanding.
Synthesis, a Houston-based technology company with a proprietary gasification technology, announced on April 14 that it agreed to a direct placement of 12 million common shares for $12 million to “certain accredited investors.” It did not name Paulson in the release, however.
Synthesis shares cost $1.08 at Friday’s close, up 14% year to date.
For its fiscal second quarter ended Dec. 31, Synthesis reported $3.9 million in revenue, a drop from $5.9 million for the same period last year due to decreased methanol prices. It also experienced a net loss of $25.6 million, or $0.35 per share, compared to a loss of $1.4 million, or $0.02 per share, due to impaired assets. Synethesis ended the year with cash of $13.7 million.
Synethsis also announced in December that it had entered into a $105 million joint venture with three plants in China to convert coal to synthetic gas as the nation’s government seeks to reduce carbon emissions by 2025.Source: GuruFocus.com