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In the worst scenario, how many shares need to be issued? anyone knows? They need to make the loan agreement public so that people can read it.
Thanks for posting the new info. Now I think we all understand why the price started to go down after the two loans.
The company is toasted, just like AEZS.
I think Dan was the person behind the two loans from the US.
http://app.quotemedia.com/data/downloadFiling?webmasterId=101533&ref=11747372&type=HTML&symbol=0001488419&companyName=Sino+Agro+Food%2C+Inc.&formType=10-Q&dateFiled=2017-08-11&cik=0001488419
Net amount drawn total is $27,692,223 at the end of Q2.
Well, what people are concerned is that the lenders have no intention to buy back the shares they sold.
Either Solomon is the stupidest CEO in the planet, or he is the smartest thief and robber in the world.
If SIAF refuses to issue more shares, then whatever the lenders have done are legitimized. All the mess will be on SIAF's side.
I hope Solomon can reach a deal with the lenders. But again, Solomon and his company is at the mercy of the lenders right now unless Solomon can come up with $32 million dollars NOW. Solomon's time is running up quickly.
NO, I do not think so. If the lenders are honest partner, they would not sell the collateral shares to start with. They sold the collateral shares and they had no intention to return anything. I mean nothing, including the Triway dividend shares. The more they sold, the more collateral shares they will get, and the more they can sell.
In addition, my projection is that TriWay dividend shares will probably never be distributed, unless Solomon is the one behind the entire collateral scheme. When SIAF is trading at a few pennies, it simply does have enough dividend shares to distribute.
The shares were issued in late 2015 and the price was around $12.
Soon, 50 million AS would not be nearly enough and the pps will be in pennies. Now everyone should understand why they wanted to increase the AS to 50 million.
Dan may not have understood the implication. But I am sure Solomon knew it is coming. Joint with a massive short attack, all current share holders will be wiped out.
I think what they meant that the shares were valued at $12 when they were issued.
Total dollar amount secured by collateral shares at the end of Q2: $31,915,409. At the end of Q1, it was only $16,712,741
Fun, fun, fun. Roughly speaking, if the price goes to $1.00, then the company needs to issue 32 million shares. If the price goes to $.50, it needs to issue 64 million shares.
From 10Q
Notes to collateral shares:
Loan 1:
There were 753,304 shares issued at face value of $5,996,665 (or, @ $8 / share), with a drawdown maximum of 80%, or $4,797,332. Interest rate at 3.5% per annum; 3-year maturity upon which the Lender will return 753,304 shares to the Company upon repayment of up to $4,797,332, plus accrued interest, if any.
Dividends paid on collateral shares will be returned to the Company upon loan repayment.
Trade Facility A
There were 1,462,880 shares issued at face value of $18,286,000 (or, $12.50 / share) with a drawdown maximum of 75%, or $13,714,500, as co-signor on behalf of Virgo (Shanghai), wherein Virgo is the party responsible to repay the principal and loan cost at maturity (3-years). No annual interest is incurred on outstanding principal; instead, upon repayment, the Facility Provider will return all collateral shares back to the Company with a one-time charge equivalent to the number of collateral shares multiplied by 20% of the (3-day average) prevailing market price of SIAF shares, at that time.
Dividends paid on collateral shares will be returned to the Company upon loan repayment.
As at 31.12.2016, the issued shares for collateral purposes is, as follows:
Trade Facility B
Same terms and conditions as Trade Facility A, except:
There were 670,453 shares issued at face value of $8,380,667 (or, $12.50 / share) with a drawdown maximum of 75%, or $6,285,500, As co-signor on behalf of Virgo, wherein Virgo is the party responsible to repay the principal and loan cost at maturity facility (3-years).
No annual interest is incurred on outstanding principal; instead, upon repayment, the Facility Provider will return all collateral shares back to the Company with a one-time charge equivalent to the number of collateral shares multiplied by 20% of the (3-day average) prevailing
At maturity (with tenure of 3 years), the Facility Provider will return all collateral shares back to company at a marginal market price of SIAF shares, at that time.
Dividends paid on collateral shares will be returned to the Company upon loan repayment.
Loan 2:
There were 590,794 shares issued at face value of $4,135,558 (or @$7 / share), with a drawdown maximum of 70%, or 2,894,890.
Interest rate is 3.5% per annum; 3-year maturity upon which the Lender will return 590,794 shares to the Company upon repayment of $2,894,890 plus accrued interest (if any).
Dividends paid on collateral shares will be returned to the Company upon loan repayment.
“Top-up” of security shares during Q2 2017
Due to the decrease in share price (from an average of $12 / share in Q3 2016 to $4 / share in Q2 2017) the overall value of collateralized shares were required to be increased to cover the total loan balances outstanding.
This resulted in a total of an additional 2,585,758 shares securitized in order to maintain the outstanding balances on the notes or trading facilities until such time as their respective balances are paid-in-full (reference table below). The same terms and conditions as mentioned under each item, above apply to these additional shares, as well.
Does anyone know, how many more collateral shares SIAF needs to issue if its PPS decrease to 1.00, and .50 etc?
The entire thing reminds me of AEZS two years ago.
Does anyone really believe that lenders will give Triway millions and millions of dollars without a management team, withou even a CFO? If you believe that, think again.
Emptyone, have you ever sent email to Solomon asking about the collateral share thing? Maybe he will reply to you.
I do not know, the more I think about it, the more it looks to me that it is Solomon's plan to screw all the shareholders. The entire collateral share thing is simply the crux of the setup.
Have to say you are courageous. So you are not concerned that collateral shares being dumped to the market? It is not something that anyone can rescue the company from.
Even worse, Solomon could be even the director of all the show. He came up with such a clever scheme to steal all the TriWay shares from us and his friends are the lenders who owns the collateral shares...
I raised this concern to Peter long time ago and asked him to ask this question in the CC and I told him that is the most plausible explanation of what had happened in the last two years. I never heard anything back from him, nor did he ask the question in the CC. The company always avoids answering the most critical questions.
I personally think that is the thesis being written by those collateral share owners and short sellers.
The worst thing is that the short sellers are in collaboration with the collateral share owners, who intend to sell as many as they could, and get the dividend shares as many as they could and never intend to return SIAF shares or TriWay shares back to the company.
Just consider the following scenario: what if they push the pps down to $0.50, how many more SIAF collateral shares will they get? Another thing is: when SIAF price goes back up, will they return the additional collateral shares issued to them back to the company? What if they don't?
Don't you think it would be better for you to impose a deadline for the reply from the company? After all, people sent you emails, they also want to know the overall picture regarding share count as well. I do not think it is fair to let people wait for more days. I think Solomon knows which collateral shares were being sold, he just did not want to admit.
Thank you for clarifying. What is your view towards the company and the collateral share mystery?
Around two years ago, a bio company AEZS had something similar to what SIAF has right now. AEZS needed to issue warrants for shares, based on the PPS of it. The lower the price, the more warrants, hence shares, AEZS needed to issue. When people found that out, the PPS went down from eighty to ninty cents a share to to four cents a share in a month or so. AEZS wad lucky to renegociate a deal with their lenders, the bleeding stopped at around 4 cents per share. Their CFO was fired afterwards, because he did not understand the formula for issuing such waarrants for the loans(just one patagraph) . They did a 100 to 1 reverse split afterwards. I wonder whether this time is SIAF's turn.
Could you update us with the total share count from IHUB users?
Your ISP may have blocked it.
before they know that the MegaFARM will work. Not COSO.
I will, but won't buy a lot. I have more than I should have already.
I am not sure why you said that. They already said that they need to file F1 for dividend shares. Besides, Dan also mentioned in Q2 CC that 10K amendents have nothing to do with dividend shares.
GUANGZHOU, China, Sept. 18, 2017 (GLOBE NEWSWIRE) -- Fanhua Inc. (FANH) (the "Company" or "Fanhua"), a leading independent online-to-offline financial services provider operating in China, today announced that its board of directors (the “Board”) has modified its dividend policy to adopt a quarterly payment schedule in lieu of an annual dividend. Under the revised policy, dividends will be declared and paid on a quarterly basis, at an amount equivalent to no less than 50% of net income attributable to the Company's shareholders in each quarter instead of no less than 30% under the annual dividend policy previously announced on April 20, 2017. The Company expects to declare the first quarterly dividend by the end of November.
Shares up 15%, eps is 0.53, pps is 12
So Solomon is dumping, as always.
Short interest went up to 125,000.
Are you done selling?
I wonder whether Solomon should also come to US to meet the investors. Hyperboy, what do you say?
Did you ask about the collateral loans, esp. the one for SDC?
Dont worry, Hyperboy's group is going to buy from you.
good summary.
today ATL at Merkur
your email to Solomon does not reflect a bit of what you said here. so, he may think differently.
I sent already, I never got response back in the past. I also sent to Peter, but he only asked sanitized questions. So no hope for the cc.
Emptyone, you should ask him about the collateral loan to SDC.