Hedge Fund Manager John Paulson Buys 10 million shares of Synthesis Energy Systems
Synthesis 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
