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Synergen Met
Opportunity
New IPO listing ASX – Closing 24th June 2022. – Making the world a cleaner place
Synergen Met, a leading global provider of plasma equipment and innovative applications using thermal plasma technology.
- Globally competitive and modular Clean hydrogen production capability
- Innovative solutions and applications using thermal plasma technology platform
Business Highlights
Synergen Met is a thermal plasma technology specialist. Using technology to create sustainable solutions to environmental problems.
To be listed on ASX: SH2 Market Cap ~$125M
Their multinational business is made up of a team of the best scientific minds, who have more than 150 years of collective experience working in the global mining, engineering, sustainability and renewable sectors.
Committed to using their technology to ensure the continuous betterment of the global environment to support future generations.
Transaction Overview
IPO OFFER
- For an offer of up to 125,000,000 shares at an issue price of $0.20 per share to raise up to $25,000,000 (before
costs) (Public Offer). - The minimum subscription under the public offer is 100,000,000 shares to raise $20,000,000 @$0.20 cents (before costs)
- The offer includes 2 free options for each subscribed share
- Options to be issued under the minimum subscription offer include: 25,000,000 with two-year options
- 25M options with two-year @ $0.25 cent exercise price; and
- 25M options with three-year @ $0.40 cent exercise price.
Lead Manager: Lodge Corporate Pty Ltd (ACN 125 323 168) (a Corporate Authorised Representative No. 316212 of Lodge Partners Pty Ltd AFSL No. 246271).
Company Overview
Synergen Met is an Australian Clean-Tech equipment and service provider.
Synergen Met’s clean hydrogen production is commercially competitive globally and can be implemented to begin the hydrogen revolution and accelerate global decarbonisation.
What they do:
- Sell Industrial Plasma equipment
- Treat and destroy toxic liquid waste – waste to energy applications
- Produce and sell clean hydrogen and carbon black for different customers
Business Overview – summarised below
SynergenMet – Hydrogen Production
- Synergen’s Technology Makes Hydrogen by splitting natural gas or biomethane directly into hydrogen and solid carbon.
- Synergen technology targets 1,350kg/day. This will fuel over 40 trucks per day.
- Process has 2 revenue streams: Hydrogen and Carbon Black
- Synergen makes money by producing the hydrogen and carbon in joint ventures with large companies and sharing the capital cost and profits
Synergen Environmental – PFAS Destruction (Per-And Poly- Fluroalkyl Substances)
What are PFAS?
- Commonly called “forever chemicals”.
- A group of manufactured chemicals used since the 1950s in common household product, specialist manufacturing (e.g. non-stick cookware, fabric, furniture), some industrial processes and fire-fighting products.
- Fluorine-rich long-chain molecules, many of which are dangerous to human and ecological health.
- Until now, very high cost to treat ground and wastewater contaminated with PFAS, which is often securely stored
for eternity in landfill sites, or incinerated to destroy it.
Innovative Plasma Destruction Technology
- Modular, skid-based transportable and convenient design
- Plasma is generated using an electrical arc discharge
- Extremely high temperatures in excess of 10,000°C
- Abundant protons are made available to mineralise the fluorine (to benign HF)
- Free hydrogen is generated
- Sufficient oxygen to react to the carbon (forms carbon oxides)
- No residual fluorocarbons are produced
- HF produced is immediately converted to calcium fluoride, a
harmless mineral, in a lime scrubber - PFAS is completely and safely destroyed, and the abundant protons mean fluorocarbon recombination is prevented!
Plasma Heating Systems – Synergen Met obtained the right to acquire Phoenix Solutions Co (“PSC”) on 31st October 2021. PSC is based in Plymouth, Minnesota, USA.
Phoenix is a leading supplier and innovator in the field of plasma heating systems. Phoenix provides plasma arc torches that solve complex industrial problems that require intense heat.
Phoenix Plasma equipment is robust technology that powers hazardous and non-hazardous waste remediation, including low-level nuclear and biomedical wastes, metallurgical applications such as tundish heating, nanoparticle generation, silicon ingot production and platinum group metals reclamation, and waste-to-energy conversion projects, processing municipal solid waste into energy-rich synthetic fuels.
Efficient
Low Cost
No Greenhouse Emissions
Highly Scalable
Financials
IPO Capital Structure
| Initial Public Offering – Capitalization Table |
| (Fully diluted post-completion) | A$ Value at IPO | Outstanding Shares |
| Shares currently on issue | $58,207,508 | 291,037,901 |
| Options on issue | $2,510,835 | 12,554,173 |
| Performance rights currently on issue | $2,327,410 | 11,637,048 |
| Shares to be issued pursuant to conversion of Convertible Notes and Convertible Loans | $35,076,943 | 175,384,713 |
| Shares to be issued pursuant to Acquisition | $6,833,925 | 34,169,627 |
| Shares issued to Lead Manager | $400,000 | 2,000,000 |
| Shares issued under the Offer | $20,000,000 | 100,000,000 |
| TOTAL | $125,356,692 | 626,783,462 |
| Two year Options with 25 cent Exercise Price | 25,000,000 | |
| Three year Options with 40 cent Exercise Price | 25,000,000 | |
| 676,783,462 |
Pre Money IPO Market Cap ~A$105M
IPO Use of Funds
|
Initial Public Offering Use of Funds (indicative) |
$20m A$ Value at IPO |
$25m A$ Value at IPO |
| Capital Expenditure for TLOU Energy Hydrogen Project | $1,650,000 | $1,650,000 |
| Hydrogen Modular Technology | $3,100,000 | $7,797,668 |
| Development of carbon handling and management system | $1,500,000 | $1,500,000 |
| Net Capital Expenditure for large scale PFAS flotation and destruction projects | $3,600,000 | $3,600,000 |
| Phoenix consideration and expenses | $4,166,667 | $4,166,667 |
| Intellectual Property Development | $250,000 | $250,000 |
| Expenses of the IPO | $1,681,955 | $1,984,287 |
| Administration and corporate costs | $4,051,378 | $4,051,378 |
| TOTAL | $20,000,000 | $25,000,000 |
Videos
Announcements
Team
Christopher Dunks
Managing Director & CEO
Terence (Terry) Gray
Executive Director
Dr Geoff Duckworth
Technical Director
Charles (Chuck) Fox
Non Executive Director (Appointed at IPO)
Joseph Stopper
Non Executive Director (Appointed at IPO)
Drew Speedy
Chief Financial Officer and Company Secretary