Sino Agro Food Inc (fka SIAF)

[jyyoo]

Redbull, we've been over this countless times. TRW (independent, private Hong Kong company) is applying for the loans not SIAF and has a much better and simpler balance sheet/business than SIAF, and therefore much greater chance of getting large financing. We are also hearing about more involvement from C. S. Ravindran as he shows up as managing director on Tri-way's website. It says he has 36 year in financing/fund raising and it is likely no coincidence that the syndicate banks for the $100M loan are from Indian banks, and this guy has years of fund raising expertise in India. He is no doubt very involved in the talks.

Also dilution has stopped finally as they forecasted. Every day this year has been very clear how big a part dilution played in the destruction of share price in the past. If SIAF can manage to PR something positive for once it will be very interesting to see how high the price goes now that there aren't millions of shares on the ask.

As for the ECAB loan, it seems their notice was a warning to not do the cash dividend since it was issued to the company right before the cash dividend announcement was expected to be (Q&A). In the Q&A and reasoning for not doing the cash dividend SIAF even mentioned it was "in consideration of creditor priorities". "The Board will reevaluate the dividend after positive cash flow and cash balances demonstrate a greater than current cushion, and more progress is made paying down or refinancing existing credit lines or debt."

If you're ECAB you likely would have been just as pissed with a company paying out a cash dividend instead of paying you back first. It makes sense. Also if you're ECAB and you know SIAF's cash flow is already improving/will be improving throughout the year, it seems like your best chance is to renegotiate to get paid. I believe this is why they decided not to accelerate payments.

I believe they’re past getting normal loans at least until the have paid back the existing loans. I would reach out to every VC’s out there in order to handle ECABs loan and stop the dilution.