You stated it as if it's a fact, which it's not. But I do also belive that collateral shares are hitting us, or I could almost say for a fact the is is the case based on all the information I have collected over the last few months.
My main suspect is still the US lender. Lending SIAF money with a 3,5% interest rate and with the same risk as us the shareholders without the upside potential just make no sense. They have for sure found a way to make a good profit from this deal. The company still claim that all collateral shares will be returned upon repayment of the loan as long as SIAF pays the interest and payback the loan on time. But I'm not convinced at all that SIAF will get back those shares. The company will have to provide me with better facts that words that there is no risk that the lender will not return the shares.
One could claim that the lender has hedge their position in SIAF by "shorting" the stock, or in this case just sell some shares. I would buy that argument if shares was sold on the first initial collateral shares, but there would not be any need to continue to do this with the top up shares since the risk is not increasing, the lended dollar amount is the same, so no need to increase the "short" position.
In my opinion, the company should do whatever it takes to repay these loans. At this point I don't care what kind of asset they have to sell, sell children and wives, I don't care, just get the money to end this nightmare for the shareholders.
