They don't have the money! This whole transaction is a way for siaf to get more credits from the creditor.
The 6,975,000 shares that has been issued, is a security for the creditor/ironridge. They are not all ment for Ironridge
In the end of the day, when Ironridge has got their shares, siaf has bought back the same amount of shares (with new credits i guess) and there are no dilution.
This credit circus should end in 2013. But I'm afraid that siaf will have problem with getting credits if the share price does not recover, since he don't want to issue more then 9,99% of existing shares. Who would have thought that siaf would be trading at this level, I don't think it was a part of Mr Lee's plan.
I don't know, maybe this is a plan by Mr Lee tho lock in floating shares and buy up the share price at the same time.
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