TULSA, Okla., April 6, 2009 (GLOBE NEWSWIRE) -- Syntroleum Corporation (Nasdaq:SYNM) today advised its shareholders about the implications of shareholders owning 5% or more of the Company's shares in order to protect its valuable Federal net operating losses ("NOLs"). There are no adverse implications to Syntroleum's NOLs for ownership stakes of less than 5% of the Company's outstanding shares. At the end of 2008, Syntroleum had approximately $320 million in NOLs which can be used to offset taxable income and could have a potential value of up to $112 million in tax savings.
Section 382 of the Internal Revenue Code contains provisions that limit the use of NOLs to offset taxable income if there has been an "ownership change" as defined by the Internal Revenue Code and Treasury Regulations. In general, an ownership change occurs when increases in the percentage ownership of Syntroleum by shareholders owning 5% or more of Syntroleum's common stock ("5% shareholders") add up to more than 50 percentage points over a three-year period. Purchases and sales by less than 5% shareholders are generally disregarded. If an ownership change of Syntroleum occurs at Syntroleum's current stock price, its use of NOLs will be subject to a severe limitation under Section 382, resulting in a material amount of NOLs expiring unused.
Syntroleum currently has 64 million shares of common stock outstanding. Ownership of 3.2 million shares would therefore make the owner a 5% shareholder under these rules. Syntroleum strongly urges any shareholder contemplating owning more than 2.8 million Syntroleum shares to please contact the company before acquiring the shares.
About Syntroleum
Syntroleum Corporation owns the Syntroleum(R) Process for Fischer-Tropsch (FT) conversion of synthesis gas derived from biomass, coal, natural gas and other carbon-based feed stocks into liquid hydrocarbons, the Synfining(R) Process for upgrading FT liquid hydrocarbons into middle distillate products such as synthetic diesel and jet fuels, and the Bio-Synfining(TM) technology for converting animal fat and vegetable oil feed stocks into middle distillate products such as renewable diesel and jet fuel. Together with Tyson Foods, Syntroleum is focused on siting, engineering and constructing plants that produce clean renewable synthetic diesel and jet fuel using low grade fats and greases as feedstock. The 50/50 venture - known as Dynamic Fuels - was formed to construct and operate multiple renewable synthetic fuel facilities, with production on the first site beginning in 2010. The Company plans to use its portfolio of technologies to develop and participate in synthetic and renewable fuel projects. For additional information, visit the company's Web site at www.syntroleum.com.
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This document includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as well as historical facts. These forward-looking statements may include statements relating to the Syntroleum(R) Process, the Synfining(R) Process, our renewable fuels Bio-Synfining(TM) technology, plans to use the Company's various technologies, commercialization of the Company's technologies, and future investor relations activities of the Company. When used in this document, the words "anticipate," "believe," "estimate," "expect," "intend," "may," "plan," "project," "should" and similar expressions are intended to be among the statements that identify forward-looking statements. Although we believe that the expectations reflected in these forward-looking statements are reasonable, these kinds of statements involve risks and uncertainties. Actual results may not be consistent with these forward-looking statements. Syntroleum undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results over time. Important factors that could cause actual results to differ from these forward-looking statements include the potential that debt or equity financing for anticipated plants may not be available, the schedule for development, construction and operation of proposed plants may not be met, anticipated appropriation and expenditure of federal monies does not occur, commercial-scale plants do not achieve the same results as those demonstrated on a laboratory or pilot basis or that such plants experience technological and mechanical problems, the potential that improvements to Syntroleum's various technologies currently under development may not be successful, the impact on plant economics of operating conditions (including energy and feedstock prices), construction risks, risks associated with investments and operations in foreign countries, our dependence on strategic relationships with manufacturing and engineering companies, volatility of energy and feedstock prices, the ability to implement corporate strategies, including the continued availability of adequate working capital, competition, intellectual property risks, our ability to obtain financing and other risks described in the Company's filings with the Securities and Exchange Commission.
(R) "Syntroleum" is registered as a trademark and service mark in the U.S. Patent and Trademark Office.