Global energy corporation entered into definitive agreement with BVI company

A global energy and gasification technology company Synthesis Energy Systems, Inc. has entered into a definitive Share Purchase and Investment Agreement with the British Virgin Islands company and a separate Operation and Management Agreement with its subsidiary China-registered Shandong Saikong Automation Equipment Co. Ltd. The agreements, which are to achieve Synthesis' strategic aim of repurposing and expanding its Zao Zhuang New Gas Company joint venture facility (ZZ) in Zao Zhuang City, Shandong Province, China, became effective on June 26, 2015, with the first installment payment of US$1.6 million received by Synthesis.

The transaction is to be completed outside of China. Under its terms, the partners will pay US$10 million cash to Synthesis in four installments during the period of 15 months, for 59.81 per cent of Synthesis shares in ZZ. The Transaction Partners will also invest a minimum additional equity of US$6.6 million to fund US$16 million expansion and increase its ownership to 73.53 per cent.