Sino Agro Food Inc (fka SIAF)

[jyyoo]

Thanks for sharing this. Do you believe the selling we've seen is primarily retail selling? The selling the past few days (especially considering that the selling stopped today) suggests the selling was coming from China as RD suggested. There is obviously panic selling going on (never a prudent investment decision) every day since I see shareholders posting and emotionally screaming to sell or that they've sold out recently for an assortment of factually untrue reasons besides the fact that the stock price has been going down.

The Swede's share count (obviously prone to inaccuracies) seems to suggest as much as 5 million extra shares that have been sold onto the market that will have to be bought back at some point. Your recent post stated no additional top-up shares for the TF loan have occurred since Q3 since the Trade Facility line (70% of collateral shares outstanding) has been reduced rather than issuing top-up shares. If Loan 1&2 even with top-up shares being issued only stands at 2.7M shares, then it would seem that the collateral shares as the source of selling recently (past 3 months) is unlikely. It seems like it has been the fearful retail selling that is responsible for the collapse? Thoughts?

Unlike most on this board, I understand that the share price and fundamentals of a company can become very disconnected at times and view such events as opportunities when they do occur.

You asked about “top-up” and collateral shares. As a reminder there are 2 purposes for collateral share backed loans. One for SIAF (overall) and the other for a Trade Facility (backed by SIAF) for the Shanghai Distribution Center ( www.sinoagrofood.com/content/shanghai-distribution-center ). The trade facility (revolving line) represents about 70% of the collateral shares outstanding. Because of the drop in SIAF share price, the TF line has been reduced rather than attempting to issue additional “top-up” shares to maintain the maximum line allowable; last top-up on the TF occurred in Q3. The other 30% of collateral shares are held on third party loans, which currently represent around 2.7m shares outstanding. Again, the Company’s intends to see these 3rd party loans paid off and shares returned either by their respective due dates, or sooner if funds become available.