I have no timeframe for any loan.
I have not heard anything about the ECAB bond for a long time until you started to talk about it. Solomon mentioned in the meeting in Stockholm that the "banks" did not like that SIAF has a high interest loan on the balance sheet, so he wanted to renegotiate the loan. I don't know how much you know about the relationship between Solomon, ECAB, the bondholders and the bondholder representative? From the rumors I have heard I would be very surprised if any renegotiated deal would lead to a bigger loan, I'm expecting it to be smaller.
I have been in contact with the company on a regular basis ever since I started my OTC share count. It has been a very slow progress. Solomon now agrees that collateral shares must be in the float. Loan 1 and 2 is given out by 4 individuals, all 4 are active market makers. Solomon thinks that the largest part of the collateral shares in the float is sold from Loan 1 and 2 since they are active market makers. He also expect that the Chinese partner has sold some shares to hedge his position. Solomon mentioned that he thought that 2,5 million collateral shares could be in the float, I think it's more.
Solomon still says that all collateral shares must be returned when they repay the loan. Considering that the company has been topping up with collateral share, it's very unlikely that the loans are defaulted. They actually paid back 2,5 million on one loan not too long ago, but it was not enough to lower the collateral requirement.
And what has been said here already, they are looking for alternative financing to repay the collateral shares loans premature with new conventional loans.
Now I will speculate some. I think it's possible that these 4 market makers don't know what the others are doing with their collateral shares. It is possible that they have been over comfortable bleeding (throwing) out collateral shares in to the float thinking that the float is much bigger than it is. With collateral shares on the market the float appears to be bigger than it is, so they might think it's easier to buy them back then it will be.
The company is also speculating based on some statistics that low volume trading days on OTC is depressing the shareprice. Or I would say that the company is blaming the low shareprice of low volume on OTC and is considering to hire a table to increase the volume. I think its nonsense unless they are looking to start a buyback program, then it would make sense to increase the volume.
We all know that the low shareprice is a result of slow progress, missed timetables and constant pressure of collateral shares, it has nothing to do with trading volumes and I did let them know my point of view as well.
