The proposed divvy to me is just icing but not unexpected after having several conversation with the CEO. I don't expect the market to get excited about anything SIAF does while it remains a pinksheet. I have accepted that.
Most folks will stop at "pinksheet" and not go any further. According to the CEO there are very few American investors in the stock anyways, it is mostly foreigners (China/Malaysia).
You have to do a little more digging and due diligence to grasp what is going on with SIAF. You also need to understand corporate structure.
Some key elements to consider are the fact that there are no preferred shares issued. All the acquisitions were done with common stock. This can clearly be understood after reviewing their 2006-2007 audit. The audit was done by a registered PCAOB firm. This is the exact same audit required of OTCBB companies.
The only reason they did not file in 2009, is because it wouldn't make sense to file a Form 10 late in 2009, then have to turn right around and file a Form 10-K. It simply wouldn't be logical.
I suspect the dividend is being considered in order to pay out to the merger shareholders. The public float is actually quite small. So the majority of the divvy would go to insiders/affiliates anyway. They already pay out minority interest as they do not fully own all the subsidiaries.
All in all, they have a very clean and simple corporate structure, profitable business in a fast growth industry. The only thing holding it back is being a pink.
Also looks like a few "sell on the news" folks are holding it back too ha-ha. Oh well..
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