Sino Agro Food Inc (OTCBB:SIAF) has been gaining a lot of investor interest, mainly due to the announcement of its 1Q2015. The company reported new highs, in terms of revenue, for its 7th quarter in a row. The most attractive part of the report was the increase in equity for shareholder by $1.76 per share, which totaled to $31.4 million. Additionally, the company also revealed plans to expand on its beef subsidiary in China, through its new CEO, Mr. Peter Rosta.
SIAF was happy to report that it is amongst those penny stocks that are in excellent financial health. The company had $10.9 million in cash and a working capital of $254.5 million, as of March 31, 2015. The only negative of the filing was that the number of outstanding shares has increased by 130,000. This included around 48,000 shares issued as incentives for staff and directors and around 76,000 shares for third party loans, which are to be returned upon the return of the debts.
SIAF is the producer of agricultural technology and a natural food holding company. The company’s main market is the Peoples Republic of China, where it markets sustainable protein foods, with a special focus on seafood. Now the company has decided to expand on its beef business in China, through its subsidiary, Qinghai Sanjiang. The appointment of Mr. Rosta to the executive board has been done to make use of his relations and 20-years of experience with companies in Sweden.
As part of the executive board, Mr. Rosta’s first order of business would be to assist the company in its participation for acquiring of two beef subsidiaries, from a state owned company. The two companies in question have shown themselves to be profitable in previous years. SIAF management would be working with Burnham Securities to analyze the transaction and assess the potential benefits and/or losses from the acquisition.
Sino Agro Food Inc (OTCBB:SIAF) closed at $14.20 on May 29, after trading 18.20 million shares during the session.