Sino Agro Food Inc (fka SIAF)

[treit2002]

I was referring to the suggestion that Solomon stop diluting and then when the stock rose begin to dilute again. That would be dishonest IMO.

Wouldn't you rather that Solomon issued new shares after the FN listing than before, for instance.

He's never said that he would issue new share on a consistent or regular basis. To stop and start would not be dishonest in the least. It would be good business to issue shares at the most favorable times he can. Just like when companies buy back shares, they do so when they feel it is favorable.

Now, if he needs the cash now and on an on-gong basis, that is different. But it it carries its own issues, unrelated to honesty.

This issue is most likely the preeminent (including fundamentals) for the share price in 2013, imo.

If Solomon needs $15M for CapEx in 2013 beyond 2013 cash earnings, loans, and grants, he might:

1) issue 2.5M per month at $.50, for a total of 30M new shares, or
2) he might get the bond deal done getting $10M of the $15M, or
3) he might wait until after the FN listing; get a sustainable bounce to $1.00 and issue 15M shares, 1/2 in a private placement, with a year holding period, or
4) any combination of above

If there's an issue of honesty, or its first cousin, forthright management in the interests of the company and its shareholders, I'd argue that he limit new shares issued by any means available to him, including (two lists in one post for you):

1) bond offering we know he is pursuing; also private placements; also waiting for waiting for the the FN listing
2) deferring some capital development
3) building a fish far without equity buy back rights
4) licensing APM technology to one province for cash, consulting fees,and a royalty
5) selling some non-critical LUR
6) issue more shares at a p/e over 2
7) couple a new strictly limited dilution policy (and partially pay for capital developent) with cancellation of only the 2012 dividend