Replies to post #120481 on Sino Agro Food Inc (fka SIAF)

[snow]

ks

"owever, IF collateral shares have been sold then SIAF MUST have known (or, at the very least, acted so reckless that it doesn't matter whether they knew or not), yet they gave us the impression that they were not (first that it wouldn't make sense, later that shares had been returned every time). To me that is fraudulent - IF they are sold."

I don't agree. SIAF MUST not necessarily have known if collateral shares have been sold the way I see it. We have too little knowledge to know. The people who have received the collateral shares may not have respected the terms, whch is hardly very reckless on the part of SIAF. But it is possibe that the terms have not been as clear as desirable which is the responsibiity of SIAF if that is the case. It is of course totally unacceptable if SIAF has given the market desinformation about the collateral shares that management knew was misleading.

[Trip-Fontaine]

snow/ks

One interesting thing about the collateral shares though is WHEN they started to sell (if they are sold). It seems that they might not have sold straight away, but waited till the PPS had declined quite a bit. Why?

As I said 100 times before: my obvious guess is that when the share price hits a certain level the lenders are entitled to sell the collateral shares, just like any other deal when you take a loan with your shares as a security.


And of course management knows about this limit, they wants to know if or when millions of shares can hit the market. Its kind of important information.