Al-Jouf Cement GA Reduces capital to SR1.08 bln to Amortize Accumulated Losses

The Board of Directors of Al-Jouf Cement Company announced on Tuesday the results of the Extraordinary General Assembly meeting, which included the approval to reduce the company’s capital to SR1.08 bln to amortize accumulated losses.
This is in the second meeting, which was held on Monday 29/08/2022, via Modern technology means, where the attendance rate reached 26.54% of the shares representing the capital.
The Voting Results on the Items of the General Assembly’s Meeting Agenda’s:
1- Approval of the Board of Directors’ recommendation to reduce the company’s capital according to the following:
– The company’s capital before the reduction: (SR1,430,000,000).
– The company’s capital after reduction: (SR1,087,000,000).
– Number of shares before the reduction: (143,000,000) shares.
– Number of shares after the reduction: (108,700,000) shares.
The reduction rate: 23.9860% of the company’s capital.
– Reason for capital reduction: To restructure the capital and amortize (23,9860%) of the capital, the accumulated losses as on December 31, 2021 amounted to (SR343,000,000).
– Capital reduction method: Cancellation of (34,300,000) shares of the company’s shares, 0.24 shares will be cancelled for every 1 shares.
– Effective date of the reduction: at the end of the second trading day following the date of the Extraordinary General Assembly in which it was decided to reduce the capital.
– The effect of the capital reduction on the company’s obligations: There is no effect of reducing the company’s capital on its financial obligations.
– Amending Article No. (7) of the Articles of Association related to (Capital).
– Amending Article No. (8) of the Articles of Association related to (subscribing to shares).
2- Approval of the amendment of Article No. (46) of the Articles of Association related to (distribution of profits).
3- Approval of the Board of Directors’ decision to appoint Eng. Abdullah bin Odeh bin Suleiman Al-Enezi, (independent member) to the Board of Directors instead of the outgoing member, Eng. Mohammed bin Saeed Attia (non-executive), starting from the date of August 1, 2022, to complete the Board’s term until Its expiry date is August 5, 2023.