Thimar reveals concluded contracts in which previous BOD was convicted of violating Financial Market System

Thimar Development Holding Company announced the contracts signed by the previous board of directors in which the conviction was issued for violating the financial market system as follows:

1. A contract for the sale and transfer of shares in the Thimar and Wasmi Agricultural Markets Company, signed on 29.12.2014 and stipulated in its Article (5), whereby the first party Thimar Development Holding Company undertakes to transfer the ownership of all real and movable assets owned by it and its branches during the fiscal year 2015 to the Thimar Markets and Wasmi Agricultural (the associate company), although Thimar Development Holding Co. owns only 30% of it. The associate company, Thimar and Wasmi, was liquidated by a court order.

2. An investment and leasing contract signed to establish a commercial complex on 10.05.2015 – and the total value for the entire contract period is (15) fifteen years in the amount of SAR 1.8 million. The project was withdrawn from the company in 2019, due to the company’s failure to implement the project as stipulated in the contract. The company has been charged with a loss of 15 million Saudi riyals (fifteen million Saudi riyals) without documents justifying this recorded loss.

The company declared that a liability lawsuit was filed against the former board members at the request of the shareholders, as in the announcement on 14.03.2023, to claim the assets and rights that were forfeited, and the lawsuit is still pending with the Committee for the Resolution of Securities Disputes.

The company’s board of directors confirms that it works and by virtue of the responsibility and powers granted to it, it will take and follow up all legal measures that preserve the company’s rights and protect the interests of its shareholders, and restore the company to its normal operations.

A reference to the company’s explanatory announcement on the Saudi Tadawul website on 09.07.2023 regarding the violations of the previous board of directors and their conviction by The General Secretariat of Committees for Resolution of Securities Disputes on 06.07.2023.