Some interesting information from the Annual Report
It seems somewhat confusing that in one place it is stated if I remember correctly that a director is the beneficial owner of slightly more than 50% of the ordinary shares. In the list of the stakes of directors it states that Solomon owns a little less than 5% of the ordinary shares and about 60% of the A-shares.
"As of end February 2019, Tri-way’s management decided to concentrate efforts to produce “Mexican White Prawns” (MWP) in the Mega farm using its Aqua-farm (4 & 5) (its indoor APM farms of 18,000 m2) and to retrofit 660 Mu (or 110 acres) of its open dams into ODRAS dams targeting to produce around 3,500 MT of MWP by mid-year 2020 aiming at sales revenue to exceed $35 million at gross profit margin of 52% and gradually increase it up to 10,000 MT/year by mid-year 2022 aiming at sales revenues to exceed $100 m at gross profit margin of 58%.
At the end of March 2019, Tri-way has just completed all its civil engineering plans getting ready for the construction team to come in to start work on the open dams as soon as some of the applied financing will be in place. Judging by the engineering information, it will require less than $2 million to complete all retrofitting and reconstruction work as such Tri-way is working hard currently on a small short term loan to come to accommodate said work in progress as soon as possible. At the same time Tri-way has been granted a 60 days credit term by two of the biggest stock feed manufacturers of the country to ease the needs in working capitals to help to fasten the pace of progress of the mega farm.
This decision was influenced by the success of the YangJiang Prawn Farm (“YJPF”) situated at YangJiang District Guangdong Province with about 50 Mu of land for production sub-divided into 26 ODRAS dams that was engineered and constructed using CA’s ODRAS technology in 2017 with trailed runs being carried out through 2018 that has been proven successful. YJPF started its first commercial MWP growing program by starting to stock an average of 230,000 pieces of (PL 7 = Post Larvae 7 days old) per Mu on 21st January 2019 in said 26 ODRAS dams and by April 1st 2019 some 70 days later YJPF sold its 1st batch of MWP from 6 ODRAS dams achieving sales over $140,000 from 18 MT of MWP at averaged size of 10 gram/piece recording mortality rate of 18% aand FCR (Feed conversion rate) of 1.03. YJPF will definitely improves here onward and this current performance is good when considering that it is YJPF’s first commercial production
(3). In Fiscal Year 2018, Tri-way’s existing farms (comprising Aqua-Farm 1 to 3 and 7 other contracted open dam farms) managed to generate sales revenues just on $100 m from the production of 12,300 MT of mixed fish and MWP at averaged gross profit margin of 29% netting over $14 million that is not including Aqua-farm 4 & 5."
I guess Aqua-farms 4 & 5 generated a loss. There is no information as to what happned during the last 3 months of 2018 that generated profits of more than 20 milion dollars. (I assume that profits during 2017 were about 30 million dollars and that profits increased by about 20%)
"(3) We believe, based on a Schedule 13G filed with the SEC on January 4, 2019, that the reporting person Iliad Management, LLC is the General Partner of reporting person Iliad. Iliad has rights, under a convertible promissory note, to own an aggregate number of shares of our common stock which, except for a contractual cap on the amount of outstanding shares that Iliad may own, would exceed such a cap. Iliad's current ownership cap is 9.99%. Thus, the number of shares of our common stock beneficially owned by Iliad as of January 4, 2019 was 4,736,292 shares, which is 8.67% of the 49,866,174 shares outstanding on December 31, 2018."
This information is not satisfactory the way I see it. What are the numbers in the convertible promissory note? How many more shares can Iliad get if the note is converted?
