Regarding bond issuance and and FN listing (chad info)
I had this conversation with Chad:
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"Hi Chad,
Thx for your latest reply.
Do you know if penser has hired any DD advisors in China that conducted a DD in China on SIAF? Something similar to the revision SEC did in 2011."
REPLY
"I believe Penser is requiring third party DD for the Bond offering but not the FN listing. I have not recieved any updates regarding those actions as of yet but understand it's ongoing. Since the Company's attorney's are based out of New York, there may be delays due to the storm."
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Interpretation:
I personally did not expect any bond issuance, it seemed very unlikely. A few takeaway points:
1. SIAF is indeed planning to issue a bond
2. If a bond is issued / bond due diligence is started, Penser and the potential investors will most likely hire a firm like KPMG, PwC or Ernst & Young or Deloitte in China that will conduct at least a financial / auditing due diligence
Result:
1. Might eliminate further share issuance
2. Is an incredible quality stamp, and the depth of this due diligence will probably be more detailed than the due diligence the SEC made in 2011 when SIAF became a fully reporting company. A bond issuance will be very much an institutional style transaction. Because Erik Penser Bank will directly underwrite the bond when selling it to investors rather than just being certified advisor on First North, Penser wants to be really sure that dealing with SIAF is a "good thing" ( i can imagine their fees are really high though)
Probability of bond issuance / listing:
I woould say it is ~95% certain that SIAF will list on First North. You don't make those kind of press releases if the company or the advisor thinks there might be some problems ahead.
Bond issue is slightly more uncertain, but as long as the Due Diligence goes through it should be ok. I would be a tad worried if the bond issuance drops out after all due diligence has been made and reviewed.
I work with institutional investment management, and the fact that Penser puts their brand on both a FN listing and a bond, and that a (probably) Chinese firm will do a DD on SIAF is not a small thing. Will mean a lot for at least Swedish institutions.
AI
