Sino Agro Food Inc (fka SIAF)

[The Swede]

What's the purpose of this?

Options under consideration to improve share value



· Allow for friendly common shareholders to convert his/her common shares into preferred stock. The Company has been in communication with shareholders that have no intention of liquidating their common stock position anytime soon, yet their common stock holdings are incorporated into the aggregate common shares outstanding along with all common shareholders. Since these individuals do not seek to reduce their holdings in SIAF, a brief overview of how ownership in SIAF is retained while reducing the number of common shares available for sale to the market is, as follows:


a) An exchange agreement is entered between the shareholder and SIAF.


b) The total amount of common shares being exchanged would go into treasury, and they would no longer count towards the total issued and outstanding common shares.


c) As a result, the total amount of common shares would be reduced by the number of common shares that are exchanged for preferred

So the company believes that the shares of shareholders who have no intention of selling shares is available for the market...