Replies to post #108866 on Sino Agro Food Inc (fka SIAF)

[Punchinello]

Did you put more skin in the game because "Heck, the share price is really low" or is it more than that? Just asking.

[andrewflying]

Purchaser, why didn't you guys buy in the OTC instead? It's cheaper.

[zerohedge]

emilio eztevez -

forgot to add a step -

*when a company has been banned from issuing more common or cannot get the SEC to allow them immediate additional authorized capital (register a simple PIPE transaction to get funding) they can ask shareholders to sell their shares back to the company. there's typically note exchange and the note-owner can then exchange the note for MORE shares as a debt conversion. this controls massive sellers who need to get out or want more return because the stock is getting smashed.

anyone buying or bidding on this company for 3-400% of daily volume may in fact be indirectly involved in an exchange of notes for shares, not directly but indirectly in which case the bidder comes back to SIAF with the requested share/note exchange.

in this way, for example, so long as the stock doesn't crater another -50% in the next 6-12 months or something like muddy waters happen to the company (in which case the purchaser is pretty much cooked) the market supporter could in fact have maybe a net +30% return in 6-12 months depending on their terms and conditions with the swapping company.

my best guess is that's where they are now, with Norway having sort of given up on the company and as evidenced by the massive price implosion - we are now down to the "short and curlies" where these third party deals may be required for a company to continue pledging "as of yet unissued shares" (due to the recent note exchange) stock to various parties in order to keep the show moving forward, albeit more slowly these days.

the purchaser under this scenario would have pretty big balls....

good night.