Sino Agro Food Inc (OTCMKTS:SIAF) shares were up 4.48% to $3.75 on Thursday and flat in after-hours trading. Share prices have been trading in a 52-week range of $3.35 to $11.40. The company has a market cap of $80.46 million at 21.46 million shares outstanding.
In a press release this week, Sino Agro Food Inc confirmed that its operating company, Jiangmen City A Power Fishery Development Co. Ltd.has received an official letter of commitment from one of Southeast Asia’s international banking firms regarding its loan approval. This facility is an unsecured revolving 2-year term loan of 250 million CNY for financing JFD’s aquaculture business unit’s working capital at 4.5% to 6.5% interest.
“We would like to extend our appreciation to the lending institution for its commitment to us and our aquaculture business portfolio. Their sector expertise, business foresight and strong understanding of the significant opportunities within the China market were invaluable to us when securing this loan. The loan will enable us to develop the farm projects in the Guangdong region within an accelerated time frame,” remarked Solomon Lee, Chairman and CEO of Sino Agro Food Inc.
He added that, in addition to funding the build out of its aquaculture segment, it will also enhance the company’s credit worthiness in its ability to secure additional funds from the market.
“We remain committed to executing on our strategic plan to develop the Aquaculture business into a world-leading provider of seafood prior to spinning out the business and listing it on a major stock exchange. This strategy is expected to unleash significant shareholder value and we are excited by the opportunities ahead of us as we move into this high growth phase of our development,” concluded Lee.
This follows a mixed earnings report from Sino Agro Food Inc for the third quarter of the year, as the company’s EPS missed estimates even though it surpassed the previous quarter’s EPS. Revenue for the quarter ending September 30, 2016 totaled $124.1 million as revenue from the sale of goods increased by 5%.
“During the third quarter of 2016 we made significant inroads executing on our strategic plan to restructure the business and maximize value for shareholders. Overall, it was a very positive quarter, exhibited through improved gross margins, a stronger cash balance and significant operational progress in both the aquaculture and the cattle/beef businesses,” remarked CEO Lee.
Sino Agro Food Inc is an agriculture technology and natural food holding company that acquires and maintains equity stakes in a portfolio of companies to produce, distribute, market and sell protein food, and produce, primarily seafood and cattle. The company also provides consulting and services to joint venture partners to construct and operate food businesses, producing wholesale fish and cattle.
In particular, Sino Agro Food Inc operates in five segments: Fishery Development Division operated by Capital Award, Inc. and Jiang Men City A Power Fishery Development Co., Limited; HU Plantation Division operated by Jiang Men City Heng Sheng Tai Agriculture Development Co., Limited; Organic Fertilizer and Bread Grass Division operated by Qinghai Sanjiang A Power Agriculture Co., Limited and Qinghai Zhong He Meat Products Co., Limited, among others; Cattle Farm Development Division operated by Jiang Men City Hang Mei Cattle Farm Development Co. Limited and Macau Eiji Company Limited, and Corporate and Others Division.