Syngas (ASX:SYS) conducts quarter post-mortem ahead of delisting

• Syngas (SYS) has released a report detailing the company’s activities during a significant 2020 June quarter
• For the company, this latest quarter was defined by a major corporate transaction and a move towards changing its listing status
• During the quarter, the company signed a share sales agreement for the acquisition of Half Moon
• Syngas also applied to delist its shares from the ASX, in order to expedite the completion of the acquisition
• The company will seek shareholder approval to delist its shares from the ASX on August 17, 2020
• Syngas shares last traded for 0.4 cents in October 2018

Syngas (CODE) has released a report, detailing the company’s activities during a significant 2020 June quarter.

For the company, this latest quarter was defined by a major corporate transaction and a move towards changing its listing status.

Since late 2019, Syngas has been focused on acquiring all of the issued shares of Half Moon (HMP). Half Moon is the majority owner and controlling interest in the Western Gawler Craton Joint Venture, and all tenements located around it.

The joint venture, along with the surrounding tenements which are 100 per cent owned by HMP and Trafford Resources, are collectively referred to as the Jumbuck Gold Project.

During the 2020 June quarter, Syngas signed a share sales agreement with HMP and Trafford for the acquisition. This agreement limited the conditions of the agreement so that it is mostly subject to shareholder approval.

Around the same time, the company also applied to delist its shares from the Australian Securities Exchange (ASX). This would further expedite the completion of the acquisition, by removing the need to comply with certain ASX acquisition rules.

While the ASX has already accepted Syngas’ delisting application, the move is still subject to shareholder approval. The company will seek shareholder approval for the delisting of shares at a meeting on August 17, 2020.

After the Half Moon acquisition is complete, Syngas will undergo restructuring and seek to relist on the ASX.

Syngas’ ability to pay for the Jumbuck Gold Project is partly thanks to unsecured loan facilities provided by Low Siak Wei, a company director.

During the 2020 June quarter, the company secured an additional unsecured loan facility with Low Siak Wei’s related company, AsiaPacific Businesslink Sdn Bhd. The loan facility, worth $1.3 million, was to fund the acquisition and for general working capital.

Over the period, Syngas spent $80,000 on admin and corporate costs — the only area of the business where it incurred operational costs.

It also netted $125,000 from borrowing proceeds, leaving it with just $113,000 in the bank at the end of the quarter.

Syngas shares last traded for 0.4 cents in October 2018.