Jabal Omar BOD Recommends Increasing Capital to SR11.5 bln by Debt Conversion

The Company announced on Thursday that, 20.04.2022; its Board of Directors has recommended the increase of the Company’s capital by way of debt conversion

The Company will convert its debts towards the Fund in the amount of five billion and three hundred and one million and two hundred and one thousand and eighty Saudi Riyals (SR5,301,201,080) as recorded in the Company’s unaudited interim condensed consolidated financial statements for the three-month and nine-month periods ended on 30 September 2021 (the “Debt”) (including the settlement of all rights and obligations owed by the Company to the Fund and its related entities) into new ordinary shares in the Company to the Fund unitholders (excluding the Company in its capacity as a unitholder in the Fund), through a capital increase of the share capital of the Company from nine billion two hundred ninety-four million Saudi Riyals (SR 9,294,000,000) to eleven billion five hundred forty-five million three hundred forty-one thousand and six hundred twenty Saudi Riyals (SR11,545,341,620) by issuing two hundred twenty-five million and one hundred thirty-four thousand and one hundred sixty-two (225,134,162) new shares.

The reason for the Debt conversion is the settlement of all rights and obligations of the Company and the Fund and the Fund related entities, the Fund and the Fund related entities will surrender to the Company all of their rights over the assets, pursuant to the relevant Fund documents and agreements, including rights of ownership and any other rights, and all collateral and security granted by the Company to the Fund and the Fund related entities being released and terminated, which will improve the Company’s liquidity and credit position and enhance its ability to achieve its growth objectives.

The Capital Increase will not result in any financial liability on or require any cash contribution by the Company’s shareholders.

The Company must obtain all required regulatory approvals and the approval of the Company’s extraordinary general assembly prior to increasing its capital through debt conversion.