Replies to post #88847 on Sino Agro Food Inc (fka SIAF)

[viking86]

BB: besides the obvious profit-related mistakes pointed out by RD, what bothers me is the fact they issued 753K NEW shares b/w 2/2/15 and 03/31/15 (out of a total of 0.907M new shares issued in Q1 per page 15 of 10Q report) to secure the first tranche of the new loan (1) without properly accounting for their dilutive effect (even if it is "in the interim" which could effectively last three years!) in the waos as should have been done per GAAP rules, and (2) in obvious contradiction with what they had previously announced in the 10K page 121:

The Lenders of these two loans has agreed to the loan amount of $10M and $15M respectively, however we are starting with a loan of $5M from each lender collectively to $10M that are secured by shares of the Company owed by a number of un-related third parties who agreed to pledge their respective shares for the Company to secure the said loans and at maturity of the loans, said shares will be returned to the pledgors respectively.

I would find it more acceptable (and honest) if they had come out and explained they had issued the 753k shares as an advance of shares owed to ECAB in conjunction with ECAB's planned conversion of its convertible loan which shares ECAB had agreed to pledge as a security for the new loan. I discussed this concern in Post 88729:

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