Arab Sea Signs MoU with Related Party to Acquire Real Estate Asset for Shares Issuance

Arab Sea Information Systems Company announced on Sunday the signing of a non-binding Memorandum of Understanding (the “Memorandum”) with Board Member Mr. Muhammad Saleh Al-Suhaibani (Related Party) to acquire a real estate asset owned by him (the “Proposed Transaction”) in return for the issuance of shares in the Arab Sea Company for information systems.

It added that this is for the purpose of using part of it to be the company’s headquarters, as it is located north of the city of Riyadh in the Al-Sahafa neighborhood in the commercial strip, and it consists of 23 floors.

It also added that the Memorandum Duration is Twelve months (12 months) as of the date of its signing and the memorandum can be extended by agreement of the two parties.

The company indicated that the name of financial advisor of each party is Falcom Financial Services Company.

1. The memorandum expires on the date of signing the final agreements of the deal or the end of the memorandum period unless it is extended by agreement of the parties (whichever occurs first);

2. Appointment of licensed consultants from the relevant authorities for the process, including the financial and legal aspects and valuation for the purposes of a fair evaluation of the asset; and

3. The final value of the real estate asset, the share price of the Arab Sea Information Systems Company, and the exchange ratio are finally agreed upon after meeting the final approvals of both parties, which includes the approval of the Capital Market Authority and the approval of the extraordinary general assembly of the first party and the signing of a binding agreement in this regard.

It stated that this memorandum is subject to the approval of the official authorities and the vote of the extraordinary general assembly of the company on the Acquisition and capital increase.

The company will announce the financial impact of the transaction after completing all legal procedures in accordance with the applicable regulations and Any future material developments related to the deal will be announced later, the company concluded.