GUANGZHOU, China, April 24, 2015 /PRNewswire/ -- Sino Agro Food,
Inc. (OTCQB: SIAF) -- In late September
2014, Sino Agro Food, Inc. and Euro China Capital AB
("ECAB") initiated a strategic plan designed to complement
operational performance with corporate steps to unlock shareholder
value. Progress in the form of a "broad strategic plan" was
announced in late December 2014. The
Company is now ready to provide the following update:
- Long term vision: Sino Agro Food's long-term vision is to
become a leading sustainable aquaculture company focused on
organically farmed fish and prawns. In this process, other
businesses will be divested, either through separate listings or
M&A.
- Listing of the Company's shares on the Oslo Stock Exchange: The
Company has together with its newly appointed financial advisor
Arctic Securities set an objective to list its common equity on the
Oslo Stock Exchange as soon as practicable.
- New Chief Financial Officer: Mr. Bertil
Tiusanen has been appointed as group CFO. Mr. Tuisanen has
previously been CFO at large Swedish corporations such as
Vattenfall AB and Coop AB. Mr. Tiusanen is currently employed as
advisor to the Norwegian Government and will start as full-time CFO
of Sino Agro Food on May
1st 2015.
- New Nordic Investor Relations: Box Communications has been
engaged to handle the Company's Nordic IR activities. Mr.
Tomas Oqvist, previously top-ranked
Swedish equity analyst, will act as Nordic IR Manager with special
responsibility for institutional investors.
Chairman and CEO Solomon Lee
commented, "During the last few months, we have worked intensively
together with Euro China Capital in order to execute on our
strategic plan to convert operational performance into shareholder
value. I am convinced that our newly formulated long-term vision to
focus on sustainable aquaculture is right for the Company. With
today's management appointments, I am confident that we have the
right team in place to continue to execute on our plan, for the
benefit of the Company, our employees and our shareholders. I am
particularly happy about the recruitment of our new CFO
Bertil Tiusanen, whom I am certain
will add valuable expertise and experience to the Company when it
comes to financing matters."
Sino Agro Food outlines its vision and defines a clear
roadmap for the next 5 years
Sino Agro Food's vision is to
become a leading aquaculture company focusing on organically farmed
fish and prawns. In 2014 the Company's aquaculture operations[1]
generated total revenues of USD 229
million and gross profit of nearly USD 70 million. The Company's aquaculture
operations have substantial growth opportunities in the years
ahead, not least through the Zhongshan Prawn Project where the
production of organic prawns using the Company's proven proprietary
recirculating aquaculture system technology will be scaled up
considerably. The first two thousand metric tonnes of annual
production capacity[2] was installed earlier this year and
production will begin in the early summer.
In addition to its aquaculture operations, Sino Agro Food owns
stakes in several other non-aquaculture businesses that are all
active within the organic food value chain. Under Sino Agro Food's
leadership, many of these operations have already been developed
into highly profitable and substantially growing businesses.
- Qinghai Integrated Cattle Farm Division (SJAP): SJAP
generated revenues of USD 102 million
and gross profit of USD 31 million in
2014. Sino Agro Food's equity ownership of SJAP is 45%.
- Cattle Farm Development Division[3]
(MEIJI): MEIJI generated revenues of USD 33 million and gross profit of USD 2 million in 2014. Sino Agro Food's equity
ownership of MEIJI is 100%.
- HU Plantation Division (JHST): JHST generated revenues
of USD 11 million and gross profit of
USD 8 million in 2014. Sino Agro Food's equity ownership of
JHST is 75%.
- Hunan Organic Fertilizer Division (HSA): HSA generated
revenues of USD 20 million and gross
profit of USD 9 million in 2014. Sino Agro Food's
proportionate equity ownership of HSA amounts to 48.5%.
In order to fulfill its vision of becoming a leading sustainable
aquaculture company, while at the same time realizing the full
potential in each of its non-aquaculture businesses, the Management
and the Board of Directors have also defined a clear roadmap for
each of its separate business divisions for the next five years.
This includes actively pursuing value enhancing merger &
acquisition (M&A) opportunities, separate public listings
and/or straight trade sales of various business units. As
previously announced, the company has already begun preparations
regarding M&A opportunities and a potential separate public
listing of SJAP.
Intention to list Sino Agro Food's shares on the Oslo Stock
Exchange
After careful consideration, the Company has
concluded that the Oslo Stock Exchange (OSE) is the most suitable
exchange for Sino Agro Food's shares. The Oslo Stock Exchange is
recognized as the largest stock exchange for aquaculture and
seafood companies globally and Sino Agro Food believes that the
Company will benefit from the visibility that it will receive from
an investment community with experience and in depth aquaculture
knowledge.
The Company has engaged Arctic Securities as its financial
advisor in preparation for a public market listing on the Oslo
Stock Exchange. Arctic Securities is a leading financial
institution in Norway with
extensive expertise in aquaculture, including a top ranked equity
research team.
Based on advice provided by Arctic Securities, it is the Company's
objective to list its common equity on the Oslo Stock Exchange as
soon as practicable. In conjunction with its listing on the Oslo
Stock Exchange, the Company will expand and strengthen its Board of
Directors.
Appointment of Bertil Tiusanen as new Chief Financial
Officer
Bertil Tiusanen is joining the company as the new
Group CFO and responsible for Business Development as of
May 1st, 2015. Following
Mr. Tiusanen's appointment, Miss Olivia
Lai will act as our group's Chief Corporate Affairs Officer
and Deputy CFO.
Mr. Tiusanen's career credentials include CFO positions at
several multi-billion U.S. dollar companies in Sweden, where he has spearheaded project
financings, negotiated corporate wide bond issues and obtained dual
exchange listings on Nasdaq US and Tokyo Stock Exchange. More
recently, he has been an advisor to the Norwegian government.
Mr. Tiusanen observed, "After having spent a significant amount
of time familiarizing myself with the Company, I am highly
impressed with the operations that Mr. Solomon Lee and his team have built up in a
relatively short period of time. I am delighted to join the Company
at this stage, when the proof of concept stage is completed and
ready to be scaled up to a new level, particularly with regards to
its unique organic prawn production. I hope that my experience and
relations in the financial sector will contribute to the Company's
ability to capture these growth opportunities in an efficient and
shareholder friendly manner."
Appointment of Tomas Oqvist as
Nordic IR
Box Communications has been engaged to strengthen
the existing IR team with extensive expertise in financial analysis
and Nordic region specific communication. Tomas Oqvist, previously top-ranked Swedish
equity analyst and founding partner of Box Communications, will act
as Nordic IR Manager with special responsibility for
institutional investors. Mr. Oqvist will be located in Stockholm.
Corporate IR representative Peter
Grossman commented, "Tomas and I will coordinate the
Company's Investor Relations activities going forward. With the
initiatives that the Company has taken, I have confidence that Sino
Agro Food will continue to broaden its investor base, including
increased institutional investor interest both in North America and in Europe.
Mr. Fredrik Danielsson, Euro
China Capital commented: "In association with the first strategy
meeting with the company, a number of parallel processes were
initiated in the areas covered by the "broad strategic plan" to
create shareholder value that was announced at the end of last
year. I am pleased that some of these processes now have been
converted into concrete results. The appointments and actions
announced today are important milestones in the transition of Sino
Agro Food to a company with a more normalized ability to finance
itself, not least with regards to debt financing."
About Arctic Securities AS
Arctic Securities is an
employee owned investment bank and is independent of all financial
institutions. Arctic Securities' absolute commitment to integrity,
quality and independent research, focusing on competence,
discretion and rapid execution, are Arctic Securities' core
competitive advantages. Arctic Securities has unparalleled
corporate finance experience in the Norwegian market.
About Bertil Tiusanen
Mr Tiusanen, age 66, has a
background as CFO in a number of large Swedish corporations
including Vattenfall, a major European energy company with annual
revenues of USD 19 billion and Coop
AB, one of the largest Nordic grocery retailers with annual
revenues of USD 4 billion. He has
served on the board of several Swedish and Norwegian companies and
is currently working full time as an advisor to the Norwegian
Government.
About Box Communications
Box Communications is a
Stockholm-based team of
communications experts with previous careers in media, finance,
business and politics. Mr. Oqvist, age 51, is a founding partner of
Box Communications and has a solid background in strategic
financial communications. Prior to working as an investor relations
and communications consultant, Mr. Oqvist has more than 15 years
experience in the financial markets, with equity analyst positions
at Carnegie and at Alfred Berg. He was a top ranked analyst in
Sweden for several years. He has
advised major Swedish, European and American institutions trading
in Nordic equities and also participated in several IPO's and
M&A transactions.
About Sino Agro Food, Inc.
Sino Agro Food, Inc. is an
agriculture technology and natural food holding company with
principal operations in the People's
Republic of China. The Company acquires and maintains equity
stakes in a cohesive portfolio of companies that SIAF forms
according to its core mission to produce, distribute, market and
sell natural, sustainable protein food and produce, primarily
seafood and cattle, to the rapidly growing middle class in
China. SIAF provides financial
oversight and strategic direction for each company, and for the
interoperation between companies. The Company owns or licenses
patents, proprietary methods, and other intellectual properties in
its areas of expertise. SIAF provides consulting and services to
joint venture partners to construct and operate food businesses,
primarily producing wholesale protein foods. Further joint ventures
market and distribute the wholesale products as part of an overall
"farm to table" concept and business strategy.
News and updates about Sino Agro Food, Inc., including key
information, are published on the Company's website
(http://www.sinoagrofood.com) and the Company's Facebook page
(www.facebook.com/SinoAgroFoodInc).
Forward Looking Statements
This release may contain
forward-looking statements relating to the business of SIAF and its
subsidiary companies. All statements other than historical facts
are forward-looking statements, which can be identified by the use
of forward-looking terminology such as "believes," "expects" or
similar expressions. These statements involve risks and
uncertainties that may cause actual results to differ materially
from those anticipated, believed, estimated or expected. These
risks and uncertainties are described in detail in our filings with
the Securities and Exchange Commission. Forward-looking statements
are based on SIAF's current expectations and beliefs concerning
future developments and their potential effects on SIAF. There is
no assurance that future developments affecting SIAF will be those
anticipated by SIAF. SIAF undertakes no obligation to publicly
update or revise any forward-looking statements, whether as a
result of new information, future events or otherwise, except as
required under applicable securities laws.
Not a Broker/Dealer or Financial Advisor
Sino Agro
Food, Inc. is not a Registered Broker/Dealer or a Financial
Advisor, nor does it hold itself out to be a Registered
Broker/Dealer or Financial Advisor. All material presented in this
press release, on the Company's website or other media is not to be
regarded as investment advice and is only for informative purposes.
Readers should verify all claims and conduct their own due
diligence before investing in Sino Agro Food, Inc. Investing in
small-cap, micro cap and penny stock securities is speculative and
carries a high degree of risk.
No Offer of Securities
None of the information
featured in this press release constitutes an offer or solicitation
to purchase or to sell any securities of Sino Agro Food, Inc.
[1] The definition "Aquaculture operations" includes all seafood
related business in the Sino Agro Food group but it is not a legal
entity itself. Sino Agro Food's Aquaculture operations
include the legal entities Capital Award (100% equity ownership)
and Fish Farm 1 (75% equity ownership). The seafood import business
reported under Sino Agro Food Inc. (100% equity ownership) is also
included as part of the Aquaculture operations. In addition, the
Aquaculture operations have options to reach 75% equity ownership
in the following non-consolidated companies: Fish Farm 2 (remaining
cost to reach 75% ownership is currently USD
20.2 million), Prawn Farm 1 (remaining cost to reach 75%
ownership is currently USD 6.4
million) and Prawn Farm 2 (remaining cost to reach 75%
ownership is currently USD 19.3
million).
[2] For reference, in 2014 Fish Farm 1's RAS production of just
over 1,000 metric tonnes generated a gross profit of approximately
USD 6 million.
[3] Includes a 75% ownership in Cattle Farm 1.
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SOURCE Sino Agro Food, Inc.