Replies to post #147766 on Sino Agro Food Inc (fka SIAF)

[RealDutch]

This is from the 10-K

Under the arrangement of the disposal agreement between all parties, it was agreed to that:



l SJAP is no longer liable and responsible for the liabilities of QZH

l If Profit will be derived from the sale of existing fixed assets of QZH, 50% of any gained profit will be paid to SJAP with SIAF receiving its proportional share of the proceeds.

l There will be an annual royalty fee paid by QZH to SJAP / SIAF calculated at 25% of QZH net income over the next 3 years beginning January 1, 2018, if operations were to be reinstituted within this period.

l Also, if QZH operations were to resume under the Government’s plan to establish QZH as a regional hub for beef processing, value-added production, etc. within the next 3-years, an option to buy up to 25% equity of QZH at its fair book value (net of the loss incurred from disposal) would be made available to the Company or its nominee, on or before December 30, 2020.



Taking into consideration all issues related to the ongoing losses incurred by QZH, the Company believes that its support in favour of QZH’s disposal is the best option for its shareholders at this time foregoing incurring further and greater losses from QZH while leaving the door open to reinvest in QZH if, and when, the larger issues are resolved and the regional beef hub plan is able to be implemented.

[aandt]

Has Solomon communicated this to you recently? Because I am seeing some signs that there might be some activity with QZH possibly becoming active again.