Sino Agro Food Inc (fka SIAF)

[melehuna]

Isn't the XIN deal exactly what shareholders don't want: dilution? This is not a loan, because it's convertible to shares at the current market price and below.

Do we want Solomon to "borrow" $13M payable with 30M shares upon conversion?

If I recall, didn't Solomon say on the call that he would not want a convertible deal, unless on favorable terms?



... Co announced that the Company has entered into an agreement with TPG, under which TPG will invest $108.6 mln through the purchase of convertible notes and common shares. Under the agreement, TPG has agreed to purchase 1) convertible notes due 2018 in the aggregate principal amount of $75.8 mln, and 2) $32.9 mln worth of common shares. The convertible notes carry an annual cash coupon rate of 5.0% and will be convertible into Xinyuan's common shares at an initial conversion price of US$6.00 per ADS.

The common shares will be issued at US$5.48 per ADS ...