Sino Agro Food Inc (fka SIAF)

[RealDutch]

The big question now is, how much pre-IPO money do they need before they can ramp up.

Let's take a 2-year timeline. They have to repay the loan 2 years from now. 18 buildings in 3 1/2 years, let's make it 4. So that's 9 buildings or $120M they have to pay the subcontractor two years from now. Total cash needed is $156M.

Then there is the license fee payable to SIAF. $43.2M for 9 buildings. But SIAF already owes Triway some money ($80M?) for receiving that 69% stake. so that money will flow right back.

How much free cash flow can Triway generate comfortably in the next 2 years? Perhaps 20,000MT or $60M. Which leaves $100M. And that's the problem.

If they can get the money somehow, then the subcontractor deal will have a much bigger impact than any spin-off IMO. You suddenly get a massive growth story. They will be constructing 5 buildings per year on average. Well, something is coming IMO. Solomon can't sit still. Perhaps an alternative deal until they can get the money.