Sino Grandness

[chinafarmer]

Has anyone gone down to 6 Battery Road #10-01 Singapore 049909 to check out the Subscription Agreements?

I strongly encourage investors to exercise their right and inspect the documents.

Not vested and not short from day of first post till now.

[value seeker]

not vested

(Sino needs the $$$.....)

The Issue Price of the Placement Shares as set out in clause 2.1 of the Subscription Agreement will be adjusted from S$0.61 for each Placement Share to the following:
(a) S$0.50 per Placement Share; or
(b) the volume weighted average price per Share traded on the SGX-ST on the last market day immediately preceding the date of Completion,

PLACEMENT – SUPPLEMENTAL DEEDS TO SUBSCRIPTION AGREEMENTS
http://infopub.sgx.com/FileOpen/Sino_Gra...eID=320992

The terms are in favour of the new investor. Given the lower share price today, the placement will have a larger dillutive impact. Could Sino Grandness have just walked away?

(Neither vested nor shorted)

[portuser]

Hi portuser,

I will like to enquire how much must sino pay to bondholders if there is no ipo under a) Sino puts in effort to list but fails and b) Sino puts in no effort to list by 30 June 2015

My gut feel is that garden fresh may not be listed by then. And the recent proceeds are cash to raise for redemption

Vested

There are now 80.5 m 2011 bonds and 270m 2012 bonds.

The penalty interest rates for the two bonds are:

…………………………………………….…………......2011 bonds……………..2012 bonds

Listing fails despite effort being made……..15%...........................15%

No effort being made to list
by 30 June 2015………………………………….…….25%............................20%

If bond holders redeem on 30 June 2015, the approximate amounts will be:

…………………………………………….……...........2011 bonds…….…..2012 bonds

Listing fails despite effort being made…RMB 140m...............RMB 390m

No effort being made to list
by 30 June 2015……………………………….….RMB 180m................RMB 450m

If Garden Fresh has not faked its sales, Sino may, with the reported high profit , borrow some money to pay off.

[chinafarmer]

not vested

(Sino needs the $$$.....)

The Issue Price of the Placement Shares as set out in clause 2.1 of the Subscription Agreement will be adjusted from S$0.61 for each Placement Share to the following:
(a) S$0.50 per Placement Share; or
(b) the volume weighted average price per Share traded on the SGX-ST on the last market day immediately preceding the date of Completion,

PLACEMENT – SUPPLEMENTAL DEEDS TO SUBSCRIPTION AGREEMENTS
http://infopub.sgx.com/FileOpen/Sino_Gra...eID=320992

I am actually flabbergasted at this price adjustment. Firstly, many were sucked in at higher levels thinking that since the Thai bought at 61, I am buying at cheaper levels than him.

Secondly, this totally disregards the price integrity mechanics of the stock market. Can the guys who bought OSIM before the recent gap down adjust their prices too citing price volatility? How about the poor Blumont guys who got in days before the crash? Can they also seek an adjustment in their price?

The Loquat is changing price labels on the shares as if they are loquat bottles in the supermarket. I saw a post in nextinsight with a photo that there is a one for one promotion going on.

[CY09]

Interesting data. From what I have gathered, an ipo of garden fresh at 12* pe at 260 rmb profit yields 3.12 billion rmb. If the bondholders get 45% of garden fresh post ipo. Their stake is 1.4b rmb. It will be better to just deer the ipo and force them to redeem. Given the situation, I am a bit confused on what's going on with the company, but nevertheless I am still holding on to my stake.

Assuming if it is a fraud, I get zero, if garden fresh is real, the valuation of Sino is 90 cents

[Behappyalways]

For those who are vested or intend to be vested, pay attention to the company's cashflow.

Strange to be borrowing such a high interest rate from convertible bond plus option to convert into shares while bank loan is only RMB23m. Why not borrow more from bank and pay off the convertible. Since you have such a 'popular' and 'killer' product I assume the bank would be most willing to lend out the money.

Watch the cashflow. The company might need the share subscription to help them. If share price falls and the subscription does not go thru, then they might have a problem.

[portuser]

Interesting data. From what I have gathered, an ipo of garden fresh at 12* pe at 260 rmb profit yields 3.12 billion rmb. If the bondholders get 45% of garden fresh post ipo. Their stake is 1.4b rmb. It will be better to just deer the ipo and force them to redeem. Given the situation, I am a bit confused on what's going on with the company, but nevertheless I am still holding on to my stake.

Assuming if it is a fraud, I get zero, if garden fresh is real, the valuation of Sino is 90 cents

Bondholders will get 24% (not 45%) of Garden Fresh if IPO goes thru.

This is because Garden Fresh has reported profits exceeding RMB 70m in 2011, RMB 140m in 2012 and RMB 250m last year.

If profits were poor, bondholders will get up to 49% of Garden Fresh.

[Wildreamz]

This new deal is unfortunately not in Sino investors favor and now the fate of Sino Grandness is completely subjected to the whims of the market. It sets a lower cap on the placement price and no limit to the downside.

Perhaps he is looking for another potential large investor to buy in at this point in time of price weakness to share the risk? Fundamentally, Sino Grandness' intrinsic value has just taken a significant hit.

I'd suggest CEO to walk away from the deal if the market conditions turn unfavorable for investors.

CY09: are you basing that on UOB Kay Hian's target price?

[CY09]

Thanks for the clarification. Nevertheless the bondholders stake is 780 rmb which is still significantly higher than the 630rmb no effort scenario. With the new data, Sino valuation is $1.12 in an event it is not a fraud

To wild dream, I am not basing on uob data. I just dig the 260 rmb from ar 13 and make a conservative assumption that fruit beverage after profit sales did not grow for fy 14. Subsequently, the rest is just inputting into excel at prevailing rmb to sgd rates and assuming the other segment is worth 5.7 pe.

The 260 rmb figure assumes a tax rate of approximately 25%

[Adagio]

Why did the Thai investors take this opportunity to renegotiate downwards the placement price? I find this dishonorable.