That's a tough question. Worst case, SJAP won't generate positive cash flow for years to come. Because it has to grow, and margins are going down. Same applies to HSA. And HU is always dependent on the weather.
They will probably be able to get a smallish loan somewhere. Perhaps do a convertible bond. Use that money to acquire PF2.
I don't know how fast they can ramp up the MegaFarm, but if they can do 10,000MT every 7 months (which I doubt) then they need a whole lot of cash.
The problem lies elsewhere, I think. The Chinese partner for SJAP will be a risk. The spin-offs in China won't happen. Even the aqua spin-off is planned for late 2017, at best. Any bank or investor looking at SIAF now will want a very sweet deal. 1-year loans won't help SIAF. It has to be a 3-year term and preferably 5-years. They can't tell the growth story, they don't have the cash. The subcontractor will want guarantees. Perhaps the government will help. So many factors to consider. The worst thing that could happen, the wholesale partner drops a bomb and leaves a $50M hole in SIAF's balance sheet. Something like that. You never know in China. They are too dependent on just a few people. Other than that, I guess they will be ok. It's just a matter of how to get the stock up. And grow the company into something everyone can be proud of. Without having to worry about cash for the next 5 years. Because that's what we are looking at. Loans have to be repaid. With interest.
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