Sino Agro Food Inc (fka SIAF)

[Traderfan]

This is a bit confusing, so they gave the company a money in the form of a convertible Note and what they are showing as stock here is their position if SIAF fails to pay them back. Do I have that right? and where is the lame PR department with the details?

Ok here is how this works usually. SIAF got money from these guys. And since this is a convertible note they are allowed to convert into shares unless SIAF pays them back in cash before they convert. Now these contracts are different from case to case, some can only convert when the note is due (and not paid back), some explicitely have in the contract that they can convert at any time (I have seen many notes that had this statement in it) and then the question is at what price can they convert. If there is no fixed price or floor price usually these guys convert with a certain discount to the average closing price of let's say the last 20 days or so. Like I said this part is never the same, always individually in each case. Or there is a fixed conversion price, or there is a discount but with a floor. These are the 3 possibilities.

So if they file for 4.5 million shares then they have converted them already.