Replies to post #38463 on Sino Agro Food Inc (fka SIAF)

[viking86]

I for one would be willing to consider that offer of putting up 10K at 12% annual interest. That's a good ROI plus it helps the company right?

[GRDTRI]

I would support an individual bond offering provided my money was fully secured with 2 to 3 x collateral backing the loan I don't think 12 percent is the right interest rate given mezz financing rates. The appropriate rate would be high teens at a minimum. Even at that rate it's far less costly to the company. And far better for existing shareholders. Finally , I would make the terms subject to minimum earnings levels, max limits on capex and clear provisions against any further equity or any other forms of debt being issued until all first liens debt paid including interest. I would have ratcheting equity conversion provisions upon non payment. Meaning we own increasing amounts of equity warrant each month debt is not paid.

[Emilez]

Solomon thinks absent institutional interest for a bond that 2000 shareholders might be willing to put up $10,ooo each for 12 per cent interest. I sort of doubt that is realistic. alternatively he would consider a rights offering of common shares, which would allow shareholders to avoid dilution to the extent they participate up to their percentage ownership.

How likely did it seem that he would have to resort to this?