Al Baha BOD Recommends Reducing Capital by 25% to Offset Accumulated Losses

Al Baha Investment and Development Company announced on Sunday that the Board of Directors decided, at its meeting held on Saturday, May 22, 2022, about its recommendation to the Extraordinary General Assembly to reduce the company’s capital by 25% of the current capital, which is as follows:

The company said in a statement that the capital before decrease is 297000000.The capital after decrease is 222750000.The percentage of capital decrease is 25 %.The number of shares before decrease is 29700000.The number of shares after decrease is 22275000.

It added that The reasons for the capital decrease is represented in amortization of the company’s accumulated losses in the amount of SR74,250,000. The method of capital decrease is amortizing 90.83 % of the company’s total losses, which amounted to SR81,741,387 as on March 31, 2022cancellation of 7,425,000 sharesone (1) share will be reduced for every four shares.There is no significant impact of the company’s capital reduction on its financial obligations.

The date of reduction is the end of the second trading day after the Extra Ordinary General Assembly Meeting in which decrease was resolved.

A financial advisor for the capital reduction process will be appointed at a later time.The company will also announce to the honourable shareholders of the company any fundamental developments in this regard, God Almighty, and God is the Grantor of success.