AMAK BOD recommends increasing capital to SR900 mln by granting shares

Board of Directors of Almasane Alkobra Mining Company (AMAK) decided in the meeting held on 18/07/2022 to recommend to the Extraordinary General Assembly to use the Share Premium account, which has a balance of SR 508,589,751 as follows:

1. Increase the company’s capital through the capitalization of SR 240,000,000 by granting one bonus share for every 2.75 shares.

2. Transfer the remaining balance of SR268,589,751 to the Statutory Reserve account.

The company said that the capital increase process will take place through the capitalization of SR240 million by granting one share for every 2.75 shares, and transferring the remaining amount of SR268.5 million to the statutory reserve account, based on the Board’s recommendation to the general public using the share premium account of SR508.5 million.

The company explained that the number of shares before the increase was 660 million shares and after the increase was 900 million shares, and the increase aims to support its financial position to achieve its strategy aimed at expansion and growth by exploiting investment opportunities in the mining sector.

The eligibility date of bonus shares shall be for shareholders owning shares by the end of trading day of the Company’s Extraordinary General Assembly meeting date (which will be announced later) and are registered at Securities Depository Center Company (Edaa) by the end of the second trading day following the Extraordinary General Assembly meeting date.

In case of bonus shares fractions occurrence, the company will collect all fraction shares in one portfolio to be sold at market price, then the value will be distributed to eligible shareholders each by their share during 30 days from the allocation of new shares to each shareholder.

The proposed increase in capital and the transfer of the remaining balance of Share Premium account to Statutory Reserve account is subject to obtaining necessary approvals from official authorities and Extraordinary General Assembly meeting on the capital increase and number of granted shares.