Investera i aktier

Kollade igenom pressreleasen för senaste rapporten lite grann igen och kollade framförallt på avsnittet nedan. Dem satsar på att vara klara med utdelningen av Tri-way till aktieägarna i slutet av juli. Vis av erfarenhet vet jag att det brukar bli förseningar men med tanke på att slutet av juli ligger ganska nära i tiden blir det förhoppningsvis bara nån enstaka månad försenat. Kanske slutet av augusti eller i september. Men det kan ju också ske i juli, man vet ju inte.

Det som bör hända härnäst är att det bör komma upp ett dokument på http://icris.cr.gov.hk som dokumenterar att Tri-ways aktier blivit tilldelade till alla deras aktieägare (SIAF och ett femtiotal av deras partners). Det bör ske snart, egentligen borde det redan skett enligt tidplanen. Jag ska kolla men i skrivandets stund är http://icris.cr.gov.hk nere för underhåll.

Samtidigt jobbar SIAF med att förbereda SEC-dokumentationen för att dela ut Tri-way-aktierna till aktieägarna. Det är alltså inte nödvändigtvis så att utdelningen bli försenad bara för att ICRIS-dokumenten är lite försenade – det verkar som att SIAF parallellt arbetar med SEC-dokumentationen.

Att utdelningen sker i slutet av juli är alltså förtfarande en möjlighet, vi får se hur det går.

Sen skriver dem även att marknadesföringsmaterialet för pre-ipo:n ska vara klart i mitten av juli. Jag tror att vi SIAF-aktieägare kommer få ta del av det, i alla fall har Tony O. hintat om att vi kommer får ta del av de nya estimaten för megafarmen.

Det kan alltså bli en händelserik sommar för SIAF. Sen får man räkna med att det kan dra ut lite på tiden som sagt men om nåt av ovanstående händer i juli får man väl vara nöjd.

Vad gäller det där lånelöftet eller letter of credit på 36 miljoner dollar så verkar det mer eller mindre kopplat till att pre-ipo-finansieringen blir av och man kan bygga fler byggnader. Det är inte säkert visserligen men det är känslan jag får. Det bör hjälpa till att locka fler pre-ipo-investerare om inte annat. Det positiva är att då kan man plöja in alla pre-ipo-pengar i nybyggnationer och sen använda lånet för att bekosta driftskostnaderna i början.

Carve-out Exercises

The Company firmly believes that the sum of its parts is worth considerably more than the market’s value of the whole. Accordingly, it has undertaken efforts to carve out its major businesses, establishing each as a standalone corporate entity. These carve-out enterprises will seek to establish value within the same financial measures afforded peer group companies, establishing step-wise increasing valuations in part through private placement prior to applying to higher valued market exchanges for IPO.

Major milestones reached in the process will reflect progress, imputed value, and liquidity; completing the aquaculture carve-out was the first.

Upcoming steps are as follows:

• Tri-Way has begun work with its appointed Hong Kong based Corporate Service Company (“HKCS”) to issue and allocate Tri-Way shares in bookkeeping form to respective owners including SIAF’s 36.6% interest and the remaining 63,4% among approximately 50 original investors/partners. As of April 27, 2017 HKSC records reflected 36.6M shares of Tri-Way having been allocated to the Company, the issuance of which is anticipated to completed at the end of May.

 

• Upon completion, HKCS will file corresponding documents to the Hong Kong Company Register noting paid up capital estimated at USD 340M and total outstanding shares of 100M at a par value of HKD 1 each. This submission of corresponding documents will occur 10 days after share issuance.

 

• Concurrently, SIAF is working with U.S. attorneys preparing required documentation for submission to the SEC in preparation for the distribution of a dividend in the form of Tri-Way shares, totaling 18.3% of Tri-Ways equity shares. Broadridge Solutions, the Company’s transfer agent in the U.S. will distribute the dividend in book entry form pending SEC and FINRA approvals, targeting completion by the end of July.

 

• Tri-Way and its investment banker are preparing presentation with attendant legal and accounting materials to initiate a Private Placement Program including road shows, PR/IR programs, and readiness for due diligence processes by interested investors. Completion is targeted to commence mid-July.

 

• At the same time, apart from equity financing, Tri-Way is working with several other reputable investment banks to secure alternative or complementary debt financing. One bank completed its due diligence last month presenting the possibility of securing a loan facility in May; others have started the process in May.

 

• With respect to the facility offer of USD 36.3M granted by a local bank to JFD China, this facility is purposed for working capital to be utilized after new facilities have been developed, and their respective operational costs warrant a drawdown on the LOC

Det här är några mailsvar som signaturen Strindberg fick alldeles nyligen. Tonys svar är i fetstil.

Have renovations taken longer time than expected or what is the reason that production will only increase by 10-15% compared with last year? Renovations have taken longer. Lower than expected results due to a variety of reasons with AF4 has also contributed.

You said there is interest from India, Africa, Indoneisen and Vietnam.

Does it only apply to sell licenses or is it possible that Siaf enters as a shareholder in these aquafarms? All of the above. And possible strategic partnerships.

Thank you for your answers. I’ll rephrase my question.

Now when all the renovations are completed and are fully operational, how much do all aquafarms produce roughly in a quarter? Our original target for 2017 was 18-20,000 MT based on my recollection of the 2016 end of year conference call.  That projection took into account that all farms would have completed all improvements and renovations that are planned for the year and on time, and, from that, would be expected to be fully successful implementing their operational plans as well. We have had to revise projections given the circumstances I explained earlier, and because funding has not come as quickly as anticipated. The lack of funding has also forced us to make other, less expensive, adaptations at farms (e.g. 3^rd generation ODRAS), not originally anticipated, with the goal to increase production to ensure we are moving forward year over year. So, until we stabilize completely, yearly and quarterly production levels are very hard predictions to make and are moving targets, although we know production will increase for sure year over year. We have our IPO consultants and auditors reviewing our revised estimates for 2017, which will be made available publicly at the appropriate time. Going forward, year to year production levels are expected to increase for the Triway collective through 2024 since we will continue to build out AF4 & AF5 and improve technologies and operations at our other farms, as we will continue to do. This is also given we are successful in obtaining the funding levels we seek.  An accounting of quarterly production levels up to and including 2016 can be found in the quarterly 10-K reports. You can see the pattern of quarterly production, which is based on market. This pattern, of course, will also change as our levels increase and market outlets for us change as part of our plan going forward.  Again, these plans will be made public and to all at the appropriate time.

Kommer SIAF att dela ut 50% av Triway till aktieägarna den 30:e juni? Mycket tyder på det. Dem säger att dem satsar på sista juni och det var 15:e maj dem publicerade detta. När det bara är en och en halv månad från prognos till verklighet kan man tänka sig att det kan stämma. Det är i alla fall en ganska stor sannolik att det blir så, låt os säga 50%. Annars blir det antagligen viss försening. Hur som helst, är man intresserad av SIAF så vill man definitivt äga över x-datumet för den här utdelningen då det kan motsvara ett väldigt stort värde.

Nedan är från senaste rapporten.

Progress and COSO developments concerning Associate Investee, Triway:

 

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Triway has appointed a Hong Kong based Corporate Service Company (“HKCS”) as its corporate secretary to assist in coordinating with direct registration (book entry) of its shares including the 36.6 % equity shares to the Company and the balance of 63.4% equity shares to the 50 plus original owners / investors in one or more of Triway’s five aquaculture operations (Stage 1). Upon completion of Stage 1, HKCS will register in Hong Kong, Triway’s total paid-up-capital estimated at US$340 million (or the equivalent of HK$2.635 billion), and its total issuance of 100 million shares @ par value of HK$1 each (Stage 2). In this respect, as of April 27, 2017, HKCS’s records reflect 36,600,000 shares having been allocated to the Company, anticipating that allocation to all parties, and the proper filings under Stage 1 being completed on or before May 31, 2017 with corresponding documents for Stage 2 to be submitted to the Hong Kong Company Register within the following 10 days.

 

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In the interim, the Company is preparing (Stage 3A) the requisite documents to be filed with the SEC in preparation for spin-off and dividend distribution on a portion of its Triway shares.

 

Broadridge Solutions, the Company’s transfer agent will assist the Company in distributing the dividend once all approvals have been provided by relevant authorities (Stage 3B).

 

The target remains to complete Stage 3 on or before June 30, 2017, although, it should be stressed, remains dependent on the time required by the SEC, FINRA, etc. to approve the spin-off distribution, including the time needed to distribute an information statement to all Company shareholders.

 

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Simultaneously, Triway’s team continues working with its financial team preparing the remaining documents needed to conduct a pre-IPO exercise, including its financial forecasts, legal due diligence, valuation models, etc. with formal presentations to the investment community beginning mid-July 2017 (Stage 4A).

 

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Apart from seeking equity financing from Stage 4A, Triway is also working with other lenders to secure debt financing (in addition to its working line of credit discussed in previous reports), wherein one lender who had begun its due diligence during April 2017 is nearer to providing a formal loan proposal and/or letter of credit at commercial rate to Triway (Stage 4B). Even though the lending facility will be less than what is targeted to be procured in the pre-IPO offering, it will provide Triway with initial capital funding to continue moving the project forward until additional funding is secured through the pre-IPO process.

 

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Triway’s objective is to secure sufficient outside funding to expand its PPE so as to begin generating the necessary free cash flow to continue its PPE development, with the aim to withhold using operating cash flow for purposes of future capital expenditures, and rather utilize it to maintain and meet its work environment obligations.

 

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There are many facets to the Triway project that will require meticulous attention, some requiring more time than others, yet attention to detail will ensure smoother outcomes, e.g., healthier production levels, fewer regulatory hurdles, an HKSE listing, etc., all in an effort to provide a better return to the Company’s shareholders in the long-run.