Referring to the company’s announcement on 10-11-2020AD regarding the board’s recommendation to increase the company’s capital by offering priority rights shares.
The Saudi Industrial Export Company (Sadirat) would like to announce to the shareholders the decision of the Board of Directors dated 22/05/1443 AH corresponding to 12/26/2021 AD to amend the Board’s recommendation related to increasing the company’s capital to the Extraordinary General Assembly to reduce the company’s capital and then increase the capital The company’s money after the reduction.
The Board of Directors would like to explain to shareholders why its recommendation to the Extraordinary General Assembly to reduce the company’s capital and then increase the capital until the expiry of the deadline granted to listed joint stock companies on the suspension of certain provisions of the new corporate system articles, which expire at 01-08-1443E on the basis of Royal Order No. (15016) and date 16-03-1442Ah. In addition, the CMA has not decided to date on the results of the application file for the increase of the company’s capital submitted to the Authority on 31-12-2020, and the application is still under consideration by the Authority.
Accordingly, the Board’s recommendation willbe amended to reduce the company’s capital and then increase the capital after the reduction, and the recommendation will be amended as follows:
First: Recommend a66.66% reduction in the company’s capital to 21,600,000 riyals:
– Current capital: SAR 64,800,000.
– Capital after reduction: SAR 21,600,000.
– Current number of shares: 6,480,000 shares: 6,480,000 shares
– Number of shares after reduction: 2,160,000 shares
– The number (2 shares) will be written off for each (3 shares).
– Reason for the reduction: Extinguishing the company’s accumulated losses of 43,200,000 riyals.
Second: Recommending an increase in the company’s capital after the reduction of 800% to become the company’s capital after the increase of 194,400,000 riyals:
– Capital after reduction: SAR 21,600,000.
– Capital after increase: SAR 194,400,000.
– Number of shares after reduction: 2,160,000 shares
– Number of shares after increase: 19,440,000 shares
– A number of (8 shares) will be issued priority rights for each share.
– The reason for the increase: raising solvency and strategic expansion of the company.
– There is also no change to the appointment of the financial advisor, as Al Khair Capital was appointed as financial advisor regarding capital reduction and capital increase in board resolution No. (31) of 22/05/1443 H on 26/12/2021 and will be announced later when submitting a request for a reduction and increase of the company’s capital to the CMA for approval.
