Synthesis Energy Systems Inc. (SYNE)

[StumpsOfMystery]

Some READING ASSIGNMENTS on $SES for those of you who don't consider self-proclaimed 'leaders' on Stocktwits sufficiently informed:

https://seekingalpha.com/article/4297701-synthesis-energy-is-extremely-risky-play

https://seekingalpha.com/article/4278439-synthesis-energy-systems-is-essentially-empty-shell-debt-1-price-target

https://seekingalpha.com/article/3976321-synthesis-energys-hydrogen-plant-is-fruitless-endeavor-and-likely-will-never-happen

https://seekingalpha.com/article/3975476-synthesis-energy-is-all-talk-and-no-walk-technology-is-still-inefficient

[StumpsOfMystery]

Are you simply horribly uninformed or deliberately misleading people? No way is this a billion-dollar company. I think their market cap is $8M. I wont go thru the list, believe what you like, but I challenge you to find any balance sheets or other documents remotely backing up your nonsense.

They have almost no revenues. Their operating plants are failures and/or not generating any income for them as the Chinese stole their tech. They owe $10 Million in 11% debentures, which they plan on paying off by issuing STOCK.

They don't own ANYT MINES, other than 37% of the Batchfire Mine, almost all of which came from their subsidiary Australia Future Energy, which owned 25%. AVRA, a Singapore company, owns the rest of it and they turned down SES's offer. Its not 'clean coal', its coal to gas technology. THey have way overdue issues with the SEC and had a hearing with them 12/19 which we still haven't heard about.

All the information you could ever want is here on their SEC page. Prove to me you are right and I am wrong or stop with the exaggeration which has everthing to do with your bagholding and nothing to do with the truth.
https://www.sec.gov/cgi-bin/browse-edgar?company=synthesis+energy&match=&filenum=&State=&Country=&SIC=&myowner=exclude&action=getcompany

[ClayTrader]

* * $SES Video Chart 01-02-2020 * *

Link to Video - click here to watch the technical chart video

[davidsson10]

+$$$ SES

[BoilerRoom]

$SES thank goodness for this stock

[TradingBabyishere]

Awesome returns here.

Great alert sent on this one and it is so far the best play of 2020 in my portfolio.

Cheers to all!!!

[BoilerRoom]

$SES Weeeeeeeeeeeeeee!

[BoilerRoom]

$SES all in here

[surfer44]

This is a billion $ company. Why? They have unlimited potential in emerging markets with their clean coal technology. Add that to the fact they are taking equity positions in coal mines which will produce cash flow.

[BoilerRoom]

$SES killing it here today!!

[alchemytrader]

your welcome for the alert bud. listen to me. i will make you rich.

[BoilerRoom]

$SES yea baby!

[surfer44]

I didn't see anything related to a patent?

[Tiger Money]

Thanks!

[davidsson10]

About a million.....

[stock1ace1]

Tiny float

[davidsson10]

Synthesis Energy shares are trading higher after the company was granted a patent titled 'Apparatus using multiple jets for gas delivery and methods of fluidizing.'

[alchemytrader]

alerted you 5.51 bud. should have listened to the better trader. i will make you rich.

[BoilerRoom]

$SES Wow!

[Tiger Money]

I no zero about this company but something was up late Tuesday

[GHC]

Perhaps AVRA has had a change of mind. That would be big news.

[GHC]

"There's lots of gas since fracking."
That statement is complete b/s. I have posted about Qld Govt. having to intervene in the gas mkt to secure supplies for industry.
The CSG bubble has well & truly burst. Curtis Island plants are running below capacity because of the failure of CSG to supply. What a joke.
Santos et al are keen to secure gas from AFE. The Qld Govt. for political reasons wants this project up & running. Fed Govt. sees votes in it so NAIF will provide some of the debt funding.
Who are the uninformed here?

[Tiger Money]

Thanks. Must have leaked this afternoon after hours? I didn’t see anything. Perhaps an announcement soon or by Monday? I don’t know this co but I saw it’s ticker after hours on CNBC

[surfer44]

Merger is pending. Maybe getting close.

[Tiger Money]

What is the after hour run about? Up big!

[StumpsOfMystery]

Thanks for your input. Are you SURE AVRA has turned down SES's offer? Is there a deadline in the merger papers? Damn, I can't bring myself to sift thru those again..

That, it seems to me, is pretty significant. Basically, it means that ABSOLUTELY NOTHING has changed. The stock, as fairly valued by the Market pre-merger, is worth maybe $1.85 !!??

And a lot of people holding the stock pre-merger were dreamer-schemers who pumped it as a lo-float and hoped enough people would jump into it on that basis. They weren't investors, they were gamblers. Nor have any of the Board members bought any stock lately.

There are MILLIONS in loans outstanding. The company has an agreement with the debenture holders to trade them SES stock to eradicate that debt, which I think was in the neighborhood of $10M. Meaning dilution. The company as much as said so.

True, there will the presumable enhancements in terms of the sale of coal at the Callide mine. Although nothing is new about this. AFE is ALREADY a subsidiary.

Truth is, we don't really know much the new company will be worth until AFE's balance sheet becomes public. I certainly wouldn't hold out for that if I were long.

But I don't get why you seem to feel the whole gasification plant is going to happen? Have you been following what is happening in Australia? Like a global warming apocalypse. I don't think the government is going to spend a BILLION DOLLARS for a plant converting the coal into gas. Why? There's lots of gas since fracking.

[Taurus69]

$ses $5.51

[GHC]

Nah, asking for a couple of months grace to get AFE merger done which should be end Feb.
Re Batchfire, I think only AVRA has declined the takeover offer which is now closed.
As long a you are bullish on thermal coal this will work out just fine with the Gladstone gassification plant slowly taking shape with SNC Lavalin doing pre-FEED.

[StumpsOfMystery]

Per the postings at the SEC website today-- So far as I can see, SES is asking for an INDEFINITE POSTPONEMENT from the SEC. Not even saying on what date in the future they will reveal what the damn company's finances are!!.

As I've said before, I think they don't want the remaining Batchfire shareholders, who may possibly still be considering whether or not to exchange their shares for SES's, to KNOW how bad the statistics are.

And they are doing THAT, because of the UNWARY pumpers, flippers, etc., in this country who don't even care about the underlying problems with this company, so long as they can generate periodic 'runs'.

Anyway, I can't imagine the SEC's patience isn't completely worn thin at this point, and that there were at very LEAST be a hard deadline for the missing financials after the hearing on Dec. 19.

Good to know the SEC is still very much on this, and only gave them 6 days of reprieve to get their documents in order, no matter how much BETTER they will no doubt look after the 'merger'.

[Taurus69]

$ses Synthesis Energy Sys (SES)
$5.94 ? -0.05 (-0.83%)
Volume: 50,027 @12/13/19 7:57:22 PM

[Taurus69]

$ses Synthesis Energy Sys (SES)
$6.3 ? 0.09 (1.45%)
Volume: 142,933 @12/06/19 5:25:51 PM EST

[GHC]

I know what I would have done but I'm an ex-stockbroker and these guys are coalminers. Lots of volume to execute short sales, exercise warrants and settle the trade.60m+ shares traded the two days after the deal was announced.
Let's wait to see what tomorrow morning brings. It might all blow up.

[StumpsOfMystery]

So, in this case, you are saying that those warrants may have been exercised. I've never held any, so am unclear what takes place. The holders pay the $3 or the $6 per share to the company DIRECTLY, and they get issued shares in return? So....that means the float is that much larger, but it's not reported right away and people would be trading on the assumption that there are fewer shares than there actually are? You may be ASSUMMING this based on volume, however, there are a lot of inexperienced penny traders , swing trader, momentum traders, etc., that get in and out very fast that might overstate the volume.

[StumpsOfMystery]

So, in this case, you are saying that those warrants may have been exercised. I've never held any, so am unclear what takes place. The holders pay the $3 or the $6 per share to the company DIRECTLY, and they get issued shares in return? So....that means the float is that much larger, but it's not reported right away and people would be trading on the assumption that there are fewer shares than there actually are? You may be ASSUMMING this based on volume, however, there are a lot of inexperienced penny traders , swing trader, momentum traders, etc., that get in and out very fast that might overstate the volume.

[StumpsOfMystery]

Well, yeah. I noticed it went on a run this aft, and covered some. AND, More than likely it will go on a run again tomorrow because it did BEFORE when there were announcements about the 'merger' and that is all people care about. AND the word 'merger'. Can you please speculate at least at the 37% figure? AND the fact that they did NOT also provide the missing financials the SEC wants. The timing of these Merger-related announcements would seem to me curious. Like an attempt to get the share price up again and/or something that might look like 'progress' to the weary SEC when they DON'T come thru with the docs tomorrow.

[GHC]

Stay short!

[StumpsOfMystery]

So, what I am saying is that there is a mysterious 5% that showed up that is more than what AFE and SES SHOULD own if no BF shareholders that weren't already represented BY the two companies showed up and agreed to the merger terms. What is confusing me is that I read that AVAN owned ALL of the rest. Is it possible AVAN broke off a piece of its holdings. Or is my assumption about AVAN's holding incorrect? Or is something else afoot I have entirely missed?

[StumpsOfMystery]

I Mean, is there anything new here. Between them, AFE and SES already own 33% of BF. And supposedly AVRA of Singapore owns the other 67%. There is a disparity in the numbers here. But I dont think there is anything new. And SES will issue MANY NEW SHARES to acquire AFE, which will dilute the present share price.

[surfer44]

Means a lot to me. I've been in the stock for 8 years. With coal mine ownership comes cash flow.

[StumpsOfMystery]

I dont see that this means anything. SES owned 7%, AFE owned 25% Before the merger. Which means somehow they got 5.5% of the non-affiliated Batchfire shareholders. Or that AFE shareholders agreed to turn their Batchfire shares over. NOW, SES is going to issue new sales galore to AFE and A small number of BF holders. Something is missing here. Well, and the reportage the SEC is looking for is missing as well.

[surfer44]

SYNTHESIS ENERGY SYSTEMS ANNOUNCES COMPLETION OF BATCHFIRE PRE-EMPTIVE RIGHTS PROCESS
GlobeNewswire GlobeNewswire•December 4, 2019
Upon successful conclusion of the merger with Australian Future Energy, SES will increase its ownership in Batchfire from 7.4% to 37.2%

Highlights:

37.2% of Batchfire shareholders accepted SES’s offer to acquire their shares, exceeding the 25% minimum participation requirement
Batchfire owns and operates one of Australia’s largest and lowest-cost thermal coal mines
Achieving the additional ownership in Batchfire is part of the merger transactions underway with Australian Future Energy
The increased Batchfire ownership is expected to strengthen the Company’s operating results and balance sheet in the future
HOUSTON, Dec. 04, 2019 (GLOBE NEWSWIRE) -- Synthesis Energy Systems, Inc. (SES) (SES) today announced the finalization of the pre-emptive rights process that was required to be undertaken, pursuant to the constitution of Batchfire Resources Pty Ltd (Batchfire), in respect of the Batchfire shareholders who had entered into a Share Exchange Agreement with SES, accepting SES’s offer to acquire their shares in Batchfire, which is the owner of the Callide Mine in Queensland, Australia. The other shareholders in Batchfire elected not to exercise their pre-emptive rights over these shares.

SES made the offer to acquire the issued capital of Batchfire via the proposed issuance and exchange of one share of SES common stock for each ten ordinary shares of Batchfire, in connection with SES’s entry into the definitive Merger Agreement with Brisbane-based Australian Future Energy Pty Ltd (AFE), announced on October 10, 2019.

The Batchfire share exchange will increase SES’s Batchfire ownership to 37.2% from its current 7.4% holding, subject to conditions specified in the Share Exchange Agreements being satisfied and the completion of the proposed merger transactions with AFE.

The final transfer of the Batchfire shares to SES is subject to the receipt of final stakeholder consents as outlined in the filings that were completed on October 10, 2019. For additional information relating to Batchfire, and the Callide Mine and its key customers, see SES’s news release, Synthesis Energy Systems to Acquire Australian Future Energy (October 10, 2019).

Robert Rigdon, SES’s CEO, commented: “This is a good result for SES, exceeding our minimum acceptance level of 25% when the offer was made. We believe the acquisition of additional ownership in Batchfire and this important merger transaction with AFE have the potential to bring growth and value to SES’s shareholders and debenture holders. SES is progressing the additional required filings and processes necessary for the closing of the merger.”

[StumpsOfMystery]

The Nasdaq has given Houston-based Synthesis Energy Systems Inc. (Nasdaq: SES) yet another delisting warning, this time for not filing its quarterly financial results on time.

That marks the second time in the past two months Synthesis has been warned for unfiled financial results — the Nasdaq sent it a delinquency notice in October centered on its failure to file an annual report for the fiscal year that ended June 30.

Even before that, Synthesis Energy was on the wrong side of Nasdaq listing standards because its stockholders’ equity had fallen below $2.5 million, according to a May 16 letter from the exchange. That first warning will come to a head in early December — the company’s six-month grace period ran out in mid-November, but it has requested a hearing from a Nasdaq panel, which puts a stop to delisting proceedings until Dec. 5, according to the latest filing with the U.S. Securities and Exchange Commission.

The late financial filings are the result of restructuring at the company ahead of its planned acquisition of Australian Future Energy Pty Ltd., CEO Robert Rigdon said in a Nov. 22 press release.

Synthesis currently owns about 35 percent of AFE. The Australian company was created to own a position in resources, such as coal and biomass, for production of fuel gas and synthetic natural gas to be used in power generation and the production of agricultural chemicals using Synthesis' gasification technology, according to a previous press release. AFE is Synthesis' exclusive channel to the Australian market.

When the acquisition closes, AFE CEO Kerry Parker will become president and CEO of Synthesis, and AFE COO Ron Higson will become COO of SES. A new CFO for SES will be named when the deal closes, if not before. Robert W. Rigdon, currently vice chairman, president and CEO of SES, will remain on the company's board. Synthesis' board also is expected to appoint one or more additional independent directors, as all other current directors of SES will resign their positions when the deal closes.


Synthesis’ most recent annual financial results are unavailable, as they have not yet been filed, but it produced $1.51 million in revenue during the fiscal year that ended in June 2018, according to an SEC filing at the time. The company said in its latest SEC filing that it is working to get the annual report, along with a regulatory filing associated with the AFE deal, done and filed.

https://www.bizjournals.com/houston/news/2019/11/27/houston-energy-co-picks-up-third-delisting-warning.html

[StumpsOfMystery]

Wait, don't you mean DE-LISTING of its shares? Exit plan for who? Could you spell it out like I were a 12 year old? I understood BF shareholders would get 1 share for their 12.

Have you managed to find enough data to estimate how much those Batchfire shares are worth? When you say they are getting SES at $6 a share, don't you mean they are getting it at whatever SES's share price is that day. If SES gets delisted 12/05, as is at least possible, that is going to destroy the SP, at least temporarily.

And, given that, and assuming Batchfire shareholders have a bigger stake in following SES stock than the average penny stock enthusiast, wouldn't they be better off waiting until delisting ruins SES's share price? Or maybe holding out for a better deal on that basis.

I really don't understand why BF shareholders, other than those that are associated with AEF, would want to hitch their coal mine to SES's wildly fluctuating share price, high-interest debt, questionable Chinese investments, and commitment to an unsaleable coal-to-gas technology?

Most of the share price is being held up by feckless amateur penny stock traders. I very much doubt if a single one of them has been following the underlying issues. They are only doing TA, acting on the basis of TA 'gurus', considering SES to be an 'energy' stock, etc.

Anyway, I really appreciate at least ONE informed observer's comments. All of mine are my opinion only.

[GHC]

Excellent find SoM! I see short interest was down substantially mid-month so will be interested to see that number for month end.
I wish I knew AVRA's intentions. I can only guess that SES's financial advisors are trying to sell it an exit plan post NASDAQ listing of its shares.
It is getting SES shares at $6 and my guess is a post-merger SP of $10-15 is possible based on 5 or 6mtpa of exports and the upside from an AFE gassification plant at Gladstone.

[StumpsOfMystery]

Well, right you are! I thought it was owned by a bunch of individuals. But I guess that was before AVRA got involved
https://www.lexology.com/library/detail.aspx?g=48c7ae15-6526-4c54-966b-e596252f794d

That kind of changes things. Not sure AVRA would want to trade their share for SES stock. Are you SURE the only alternatives are the binary ones you suggested? It's not possible for AVRA to peel off some, but not all of their shares? It seems to me SES is desperate at this point and would take ANYTHING that would potentially make their balance sheet look better. They are practically BEGGING the SEC to postpone delisting until the 'merger' can be completed. On the other hand, they do mention that they need to get the audit done BEFORE the merger can be completed. And it would seem that the financials might be so bad as to cause a drop in their share price to a level where AVRA would be less interested.

[GHC]

Since AVRA owns 67% of BF your scenario is impossible. Outcome is binary - 33% or 100%. Someone will be on a charm offensive with AVRA.
Can this "someone" bring home the bacon?

[StumpsOfMystery]

Since it's taking them SO LONG to deliver their required financials, once can only assume it's before they AIN'T GOOD! They never offerred an explaination. Like, "Oh, our CFO accidentally shot himself in a hunting accident." Nope, their responses to the SEC give no explanation other then they were 'trying hard' to do it. Clearly, they hoped to have as much as they can of the merger done before they report.

They might even decide it is better to go ahead and be DE-LISTED, and moved to the OTC than to show their cards.

WHY? Because, IMHO, they desperately need as many Batchfire shareholders as possible to turn over their shares for SES shares.

Hopefully, as many as 51%. That way they would have Batchfire's productive assets to claim as their own. Why Batchfire's shareholders would do that is an open question. Probably has a lot to do with them being ignorant of the REALITY of SES's financial status. And buying some hopeful fantasy of the merger enabling better access to US capital markets

[GHC]

Looks like this name is blowing up.Can management meet the deadline?

[GHC]

I hope you are short. It's a winning position!

[surfer44]

Good one. I forgot that everyone in the stock market has an agenda!