Replies to post #23298 on Sino Agro Food Inc (fka SIAF)

[Bloodbowlfan]

I am looking for the process of dilution/financing shares. After all the whole point of dilution is financing.

1. 1 million new shares are issued
2. 1 million shares are sold to "Broker 1" at 70% of market share price.
3. "Broker 1" sells 1 million shares on stock market.

Is this how it works?

[RealDutch]

It's widely acknowledged that shares hitting the market is the problem, not effect on earnings.

It is astonishing how many people still don't have a good understanding of the real problem despite the number of times we have discussed this. And what's even worse... It appears that the CEO still believes that dilution is our main problem. Perhaps he will get a wakeup call when we are about to list on FN and we don't qualify because the stock is trading below €0.50.

Millions of shares hitting the market at depressed prices is what is causing many problems. One of them, is that it makes the company look like a scam.

[mauiguy2]

Treit... regarding financing shares being issued..are we sure about this? 2014 is just around the corner.

Won't have this problem in 2014.