InvestorsHub Logo
Followers 118
Posts 36088
Boards Moderated 2
Alias Born 04/19/2012

Re: AIK post# 111492

Sunday, 04/30/2017 6:59:41 AM

Sunday, April 30, 2017 6:59:41 AM

Post# of 163722

They must have low construction costs and low cost of operation to make it profitable.



This is how I see a perfect scenario unfold.

Spin off 25%. Use the other 25% as collateral for a $50M loan. Either with the Asian bank, or Garrett could do it. Invest it in Triway at 2xNTA, increasing SIAF's stake by 10%.

(The plan right now is to construct 6 buildings every year. From currently 1. At a cost of roughly $40M for every 3 buildings.)

Use the $50M to construct 3 buildings in one year. That's a tripling of the growth rate. They can't go from 1 to 6 overnight anyway.

A year from now, when the pre-IPO is fully subscribed, take back the $55M that Triway owes SIAF. Pay off the loan. Spin off another 25%. Double the pace of construction.

So I think this is a good plan. Or, we could still struggle to get the first pre-IPO 6 months from now.

Join InvestorsHub

Join the InvestorsHub Community

Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.