It may well be but at least do some basic research regarding debt. This is from their AGM presentation:
• As an immediate measure to secure and fund additional milk supplies, BFC will employ debt funds, by using the dairy farms as security
• BFC currently has no debt. The returns from the additional milk will far exceed the cost of servicing the newly acquired debt
• The gearing level will be less than 25% and provide for prudent capital management of BFC’s balance sheet
It's the right move as manufacturing cheese is capital hungry - the maturation process and then customer payment terms far exceed what you get from the milk supplier. Combine that with building a mozzarella plant and this was going to be necessary unless significant profits materialised immediately, which Dashang crippled by reneging on their deal.
BFC Price at posting:
26.5¢ Sentiment: None Disclosure: Not Held