Fletcher attempts to buy Syntroleum stock but is rebuffed

By Devika Patel

Knoxville, Tenn., June 2 - Syntroleum Corp. said in an 8-K filed Monday with the Securities and Exchange Commission that Fletcher Asset Management has notified the company it wants to buy $2.69 million of the company's stock.

Fletcher said it hoped to buy 6,064,040 common shares at $0.4442 per share, but Syntroleum objected to this investment, wanting Fletcher to consummate its initial $12 million investment before initiating a new financing.

As previously reported, the company said on April 22 that Fletcher had not made the initial $3 million investment stipulated in an agreement between the two companies for a $12 million equity purchase.

In that deal, Fletcher agreed to buy approximately 2.2 million shares at $1.39 per share, which was a 60% premium to the closing share price of $0.88 per share on April 22.

Under the two-year agreement, which priced Nov. 18, Fletcher was to buy $3 million of stock within six months at $0.60 above the market price of the stock.

Based in Tulsa, Okla., Syntroleum is focused on constructing a plant that produces diesel and jet fuel from low-grade fats and greases.

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