Sino Agro Food Inc (fka SIAF)

[zerohedge]

mark - sorry for your loss. reality is that these guys "parroted" aka "borrowed" assets from other chinese guys. they then used the SIAF entity to sell shares and "capitalize" these chinese project assets and put signage all over the assets. problem is that the CAPEX is wildly overbooked which causes us to believe the book value is fake as well. they made deals with these chinese asset owners that they would give them some money and build some stuff and that at the end of the day the chinese guys would honor the CJV (cooperative joint venture) and actually pay them a share of profits. with a CJV there's no equity ownership therefore no legal ownership of cash flow. you cannot therefore walk in and empty the bank of your CJV partner. so what we have is SIAF paying "itself" consulting revenue from their (own) share sales to capitalize chinese construction!!! .... then they tell the chinese guys that they want to be their sole purchase and sale agent and run all of that product sales stuff through their belize entity "capital award" plus claim this awesome prawn technology that they are supposedly licensing and getting paid for.... so they have a single buyer for everything that they helped these chinese guys to build. confusing enough? there's more. next they are "spinning off" the unowned (but capitalized assets using your money) as iPO candidates. this is a simple impossibility. after carefully reviewing everything for a year now, this has been the conclusion. everyone who didn't believe us from $14 to $1.4 per share got totally smoked. they raised money using this shell company, paid themselves consulting fees. that's what they got. construction fees. now with the shares at $1.30 they legally have nothing, in our opinion. really terrible.