Saudi Cable Company announces the Board of Directors’ recommendation to reduce the company’s capital and then increase the company’s capital by offering rights shares
| ELEMENT LIST | EXPLANATION |
|---|---|
| Introduction | The Saudi Cable Company announces that the Board of Directors decided, by passing on Wednesday 10/19/2022, to recommend to the Extraordinary General Assembly to reduce the company’s capital and then increase it through priority rights shares according to the following details: |
| Date of Board Meeting | 2022-10-19 Corresponding to 1444-03-23 |
| Capital before decrease | 66,729,060 |
| Capital after decrease | 7,000,000 |
| Percentage of Capital decrease | 89.5 % |
| Number of Shares before Decrease | 6672906 |
| Number of Shares after Decrease | 700000 |
| Reasons for the Capital Decrease | Restructuring of the capital in order to write-off (89.5%) of the accumulated losses, an amount of (59,729,060) Saudi Riyal. |
| Method of Capital Decrease | Cancellation a number of (5,972,906) of the Company’s shares, such that, 0.895 share will be reduced for every 1 share |
| Impact of the Capital Decrease on the Company’s Obligations, Operations or Operational, Financial or Organizational Performance of the Company | Capital decrease will not impact the Company financial obligations |
| Date of reduction | The End of the Second Trading Day after the Extra Ordinary General Assembly Meeting in which Decrease was Resolved |
| Approvals | The approval of the relevant official authorities and the extraordinary general assembly |
| Appointment of a Financial Advisor and the Submission of the Application for Capital Decrease to CMA | An announcement will be made when a financial advisor is appointed as well as when the capital reduction application file is submitted to the Capital Market Authority for approval |
| Additional Information | The company’s board of directors also recommended, at the same meeting of the extraordinary general assembly, and after the completion of the capital reduction process, to increase the company’s capital through a rights issue of 400,000,000 million riyals, so that the capital after the increase becomes 466,729,060 million riyals, the details of which are as follows: Capital before the increase: 7,000,000 riyals Capital after the increase: 287,000,000riyals Capital increase percentage: 4000% Number of shares before the increase: 700,000 shares Number of shares after the increase: 28,700,00 shares The reason for the capital increase: Restructuring of the Company’s capital in order to inject new capital to secure working capital to enable the Company to increase operational capacity and support its future activities. Method of capital increase: Offering and listing of rights issue (28,000,000) Shares. Eligibility to subscribe: The eligibility to subscribe will be to the shareholders who own the shares on the day of the extraordinary general assembly which decided to increase the capital by offering rights shares and whose names appear in the company’s shareholders register at the Depository Center at the end of the second trading day following the date of the extraordinary general assembly which It will be scheduled at a later time |
