Sino Agro Food Inc (fka SIAF)

[jyyoo]

Empty, real question. Can you put together a realistic plan that you think SIAF/TRW should follow? Personally, I always wanted SIAF to 1) pay a cash dividend 2) receive debt financing to end equity financing permanently 3) distribute Tri-way shares 4) reduce capital expenditures


1) They announced a cash dividend to be paid in about 3 months now
2) A couple weeks ago they told us about all the financing options they have in the pipeline including the $100M syndicate loan and essentially told us dilution will end in 2019 and provided what guidance they could for the rest of the year but that it would be over by December.

After addressing all these concerns over the past month and after working proposed terms to accommodate the interests of all parties we regained positive footing. In the past month we have found a more willing lead banker, one with greater China specific experience, and we found a means to provide acceptable collateral. During my meeting last week we confirmed that we have invested with the proper network who agreed to provide land as the collateral. With this understanding, which are not yet finalized in writing, we believe we are in place to close on a loan of approximately $100M USD

3) They put together an official plan for distribution of Tri-way ownership which includes preferred shares and told us it will be announced in a few weeks

4) They have reduced capital expenditures and even signed a joint venture where we receive 25% of profits without putting up any capital.

We have signed a 5-year joint venture agreement with a 3rd party who will bear the expenses to develop approximately 70 acres of various fruit trees and to distribute end product. JHST will receive 25% of profits. Towards the end of Q2, 40% of the acres have been planted. We are encouraged by this today and believe that our willingness to adapt to changing market conditions…will drive significant cash flow beginning in the 4th Quarter.

I know you'd love Dan and Solomon to be replaced but short term I don't see that happening. Perhaps Dan some time next year? But regardless, even with these two in here, if the plan is followed there is enormous upside here.