Sino Agro Food Inc (fka SIAF)

[RealDutch]

Now I understand a statement Solomon made 1 1/2 years ago. He said the JV partners don't care if the company repurchases stock from them at a lower price than the initial settlement price because they already made a profit.

By the time SIAF acquires a 75% stake, the JV partners already have 75% of their money back. But during that first year of operation (or two), 75% of the profits go to the JV partner because they own 75% at that stage. I don't know why I wasn't able to put my finger on that before today but that's because I wasn't sure what happened with that first 25%, or the timing of when JV's are officially approved.

It also explains why the JV have no problem accepting stock for debt settlement. Which I still think is mostly related to inventory build up and start up costs.

It's a great business model, these JV's. With many mutual benefits. Except for the JV partners dumping stock