Synthesis Energy Systems, Inc. and Suzhou THVOW Technology Co. Announce Final Negotiations for a Restructuring Agreement for ...
August 14 2017 - 8:00AM
Synthesis Energy Systems, Inc. (SES) (NASDAQ:SYMX), a global leader
in the clean and efficient production of low-cost synthesis gas for
high value energy and chemical products, today announced that its
Tianwo-SES Clean Energy Technologies Co., Ltd. (Tianwo-SES) joint
venture partner, Suzhou THVOW Technology Co., Ltd. (THVOW)
(Shenzhen listing code:002564), reported in a press release dated
August 11, 2017 that the parties are restructuring Tianwo-SES. SES
confirms that the Company is finalizing the details of the
restructuring agreement, and that the total deal value is expected
to be 11 million Yuan (approximately $1.65 million).
SES President and CEO, DeLome Fair, commented:
“This restructuring of Tianwo-SES, our Shanghai-based technology
and equipment supply partnership with THVOW, includes the entry of
the Innovative Coal Chemical Design Institute (ICCDI) which brings
more engineering and construction expertise into Tianwo-SES
alongside THVOW’s global equipment manufacturing and supply and our
leading syngas technology capabilities. ICCDI engineered and
constructed all three CHALCO operating syngas projects using our
technology today. We are pleased to be nearing completion of what
we believe will be a mutually beneficial agreement with our
Tianwo-SES partner. As part of the restructuring we expect to
reduce our ownership position in Tianwo-SES from our original 35%
holdings to 25%.”
As part of the first step of the agreements to
be finalized, SES has received an initial payment of 1.2 million
Yuan (approximately $180,000) for all outstanding invoices for
services SES has provided to Tianwo-SES.
SES, through its wholly owned subsidiary, SES
Asia Technologies, Ltd., originally entered into definitive
agreements to form the Tianwo-SES joint venture with THVOW,
formerly Zhangjiagang Chemical Machinery Co., Ltd. in February
2014. Since formation, Tianwo-SES successfully completed the supply
of specialty equipment and technology related to SES’s syngas
generation technology to the three CHALCO projects built by
ICCDI.
About Synthesis Energy Systems,
Inc.
Synthesis Energy Systems (SES) is a
Houston-based technology company focused on generating clean,
high-value energy from low-cost and low-grade coal, biomass and
municipal solid waste through its proprietary technology for
conversion of these resources into a clean synthesis gas (syngas)
and methane. SES’s proprietary technology enables the production of
clean, low-cost power, industrial fuel gas, chemicals, fertilizers,
transportation fuels, and substitute natural gas, replacing
expensive natural gas-based energy. SES’s technology can also
produce high-purity hydrogen for cleaner transportation fuels. SES
enables greater fuel flexibility for both large-scale and efficient
small- to medium-scale operations close to fuel sources. Fuel
sources include low-rank, low-cost high ash, high moisture coals,
which are significantly cheaper than higher grade coals, waste
coals, biomass, and municipal solid waste feedstocks. SES: Growth
With Blue Skies. For more information, please visit:
www.synthesisenergy.com.
Forward-Looking Statements
This press release includes "forward-looking
statements" within the meaning of Section 27A of the Securities Act
of 1933, as amended, and Section 21E of the Securities Exchange Act
of 1934, as amended. All statements other than statements of
historical fact are forward-looking statements. Forward-looking
statements are subject to certain risks, trends and uncertainties
that could cause actual results to differ materially from those
projected. Among those risks, trends and uncertainties are the
ability of our project with Yima to produce earnings and pay
dividends; our ability to develop and expand business of the TSEC
joint venture in the joint venture territory; our ability to
develop our power business unit and our other business verticals,
including DRI steel, through our marketing arrangement with Midrex
Technologies, and renewables; our ability to successfully develop
the SES licensing business; the ability of the ZZ Joint Venture to
retire existing facilities and equipment and build another SGT
facility; the ability of Batchfire and AFE management to
successfully grow and develop their Australian assets and
operations, including Callide and Pentland; the economic conditions
of countries where we are operating; events or circumstances which
result in an impairment of our assets; our ability to reduce
operating costs; our ability to make distributions and repatriate
earnings from our Chinese operations; our ability to successfully
commercialize our technology at a larger scale and higher
pressures; commodity prices, including in particular natural gas,
crude oil, methanol and power, the availability and terms of
financing; our customers’ and/or our ability to obtain the
necessary approvals and permits for future projects, our ability to
raise additional capital, if any, our ability to estimate the
sufficiency of existing capital resources; the sufficiency of
internal controls and procedures; and our results of operations in
countries outside of the U.S., where we are continuing to pursue
and develop projects. Although SES believes that in making such
forward-looking statements our expectations are based upon
reasonable assumptions, such statements may be influenced by
factors that could cause actual outcomes and results to be
materially different from those projected by us. SES cannot assure
you that the assumptions upon which these statements are based will
prove to have been correct.
Contact: MDC GroupInvestor
Relations:David CastanedaArsen
Mugurdumov414.351.9758IR@synthesisenergy.com
Media Relations:Susan
Roush805.624.7624PR@synthesisenergy.com
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