Saudi Cable BOD recommends capital reduction to SR66.7 mln, then capital increase by offering rights shares

The Saudi Cable Company announces that the Board of Directors decided, by passing in its meeting held on Thursday 02/06/2022, to recommend to the Extraordinary General Assembly to reduce the company’s capital by 74.6% from SR 262.3 million to SR 66.7 million and then increase it through priority rights shares.

Reasons for the Capital Decrease is restructuring of the capital in order to write-off (100%) of the accumulated losses as of 31 March 2022, an amount of (195,582,000) Saudi Riyal.

Impact of the Capital Decrease on the Company’s Obligations, Operations or Operational, Financial or Organizational Performance of the Company: Capital decrease will not impact the Company financial obligations.

Date of reduction: The End of the Second Trading Day after the Extra Ordinary General Assembly Meeting in which Decrease was Resolved.

These measures need the approval of the relevant official authorities and the extraordinary general assembly.

Additional Information:

The company’s board of directors also recommended, at the same meeting of the extraordinary general assembly, and after the completion of the capital reduction process, to increase the company’s capital through a rights issue of 400,000,000 million riyals, so that the capital after the increase becomes 466,729,060 million riyals, the details of which are as follows:

Capital before the increase: 66,729,060 riyals

Capital after the increase: 466,729,060 riyals

Capital increase percentage: 599%

Number of shares before the increase: 6,672,906 shares

Number of shares after the increase: 46,672,906 shares

The reason for the capital increase: Restructuring of the Company’s capital in order to inject new capital to secure working capital to enable the Company to increase operational capacity and support its future activities.

Method of capital increase: Offering and listing of rights issue (40,000,000) Shares.

Eligibility to subscribe: The eligibility to subscribe will be to the shareholders who own the shares on the day of the extraordinary general assembly which decided to increase the capital by offering rights shares and whose names appear in the company’s shareholders register at the Depository Center at the end of the second trading day following the date of the extraordinary general assembly which It will be scheduled at a later time