Paulson Buys Synthesis Energy

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.

Related to: Hedge Fund Update

Tags: Hedge Fund of Funds Business, Hedge Fund, Hedge Funds, Fund of Hedge Funds, Hedge Fund of Funds, Hedge Fund Industry, Hedge Fund Group, Hedge Fund Market, Hedge Fund Investments, Hedge Fund Advisory Firm, Hedge Fund Returns, Synthesis Energy Systems, Inc., John Paulson, GuruFocus Real Time Picks, Houston, Technology Company, China.