Amana Insurance Announces Decrease in its Accumulated Losses to 45.34% of Capital

Amana Cooperative Insurance Company announced on Wednesday the decrease of its accumulated losses to 45.34 % of the Capital for the period ending 30/06/2022 after completing the procedures of the capital increase by way of rights issue, increasing the company’s capital from SR130,000,000 to SR430,000,000, an increase of 230.7% through offering rights issue shares of 30,000,000 ordinary shares with a value of 300,000,000.
The amount of the accumulated losses is SR194,959K. The reason for the decrease in the company’s accumulated losses is due to the increase in the company’s capital from SR130,000,000 to SR430,000,000, i.e. an increase of 230.7% through offering rights issue of 30,000,000 ordinary shares with a value of 300,000,000.
Where the company’s board of directors issued on 17/01/2022 its recommendation to increase the company’s capital by offering rights issue in order to support the company’s future plans, enhance the solvency margin and increase investment income. The approval of the extraordinary general assembly of the company was obtained to increase the company’s capital, which it was held on 29/05/2022.
The procedures and instructions related to listed companies with accumulated losses reaching 20% or more of their share capital shall be applied on the company, In addition to applying any other regulations or instructions (if any) in this regard.
– And based on the above-mentioned percentage of the company’s accumulated losses (45.34%), this announcement takes the company out of the implementation scope of Article 150 of the companies’ law, due to the reduction of its losses to less than 50% of the share capital.