Sino AG — Capital/Financing Update 2018

Dec 19, 2018

Form 8-K: Report of unscheduled material events or corporate changes

Form 8-K: Report of unscheduled material events or corporate changes

Item 2.04: Triggering Events That Accelerate or Increase a Direct Financial Obligation or an Obligation Under an Off-Balance Sheet Arrangement.

On August 29, 2014, Sino Agro Food, Inc. (the “Company”) issued a Promissory Note (the “ECAB Note ”) to Euro China Capital AB (“ ECAB ”) in the principal face amount of $33,300,000, as subsequently amended by a Restructuring Agreement executed in July of 2017 (as so amended, the “ New Note ”).

We received a notice of default (the “Notice”) from ECAB on December 12, 2018 contending that the New Note was in default because (i) SIAF has not made repayments on the New Note in the manner prescribed by its terms, and (ii) of certain other unspecified events of default. While ECAB stated in the Notice that it has not elected to accelerate the right to repayment of the entire principal amount, including accrued but unpaid interest on the ECAB Note, it reserves the right to do so.

Prior to receipt of the Notice from ECAB, the Company was attempting to reach a negotiated settlement with ECAB. Notwithstanding receipt of the Notice, the Company hopes to continue to work with ECAB to settle its obligations under the ECAB Note. The Company intends to vigorously defend its position should a mutually amicable resolution prove unattainable.