Saudi Cable BoD cancels recommendation to reduce, maintain recommendation to increase it to SR 346.7 million by offering priority rights shares

Saudi Cable Company announces the latest developments for the announcement of the Board of Directors recommendation to reduce and while maintaining the recommendation to increase it to 346.7 million by offering priority rights shares
Referring to Saudi Cable Company’s announcement on 23/03/1444H corresponding to 19-10-2022, of the Board of Directors’ recommendation to reduce and then increase the capital of the Company by offering priority rights shares;
So, the Board’s recommendation after amendment becomes: increase the company’s capital offering priority rights, as follows:
Capital before the increase: 66,729,060 riyals
Capital after the increase: 346,729,060 riyals
Capital increase percentage: 519.61%
Number of shares before the increase: 6,672,906 shares
Number of shares after the increase: 34,672,906 shares
This recommendation was the result of several discussions with the financial advisors, and the Board’s decision to cancel its previous recommendation to reduce the company’s capital based on the developments, in negotiation with a number of investors to purchase some of the company’s debts in exchange for converting them into ordinary shares at the nominal value and company’s debts in exchange for converting them into ordinary shares at the nominal value and developments in the financial restructuring procedure, the retention of the recommendation to increase capital by offering priority rights shares was to provide the liquidity necessary to expand operational processes.
The company will make the announcement when there are any substantial developments with respect to the capital raising file. The Company also wishes to clarify to the valued shareholders that if the procedures to increase the Company’s capital are completed, in accordance with the recommendation of the Board of Directors to the Extraordinary General Assembly, it would reduce the ratio of accumulated losses of the Company to below 50% of its capital, in line with the requirements of article 150 of the Corporate Regulations, as well as providing cash to support operating capital and improve the Company’s cash flow.
This comes with reference to Saudi Cable Company’s announcement on 23/03/1444H corresponding to 19-10-2022, of the Board of Directors’ recommendation to reduce and then increase the capital of the Company by offering priority rights shares.