October 5… Raydan discusses BOD recommendation to reduce capital to SR158 mln to amortize accumulated losses

The Board of Directors Raydan foods company invited its shareholders to the extraordinary general assembly meeting that includes reducing the company’s capital (the first and second meeting an hour after the first), which is scheduled to be held on Wednesday 05-10-2022 through modern technology using the Tadawulaty system.

The General Assembly Meeting Agenda:

• Vote for the Board of Directors’ recommendation to reduce the company’s capital according to the following:

– Capital before reduction: SR337,500,000

– Capital after reduction: SR158,084,670

– Capital reduction percentage: 100%

– Number of shares before dilution: 33,750,000 shares

– Number of shares after reduction: 15,808,467shares

– Capital reduction method: Cancellation of 17,941,533 shares of the company’s shares, to extinguish 100 % of the accumulated losses amounting to SR343,000,000 as on June 30, 2022, whereby (1.06) shares will be cancelled for every (2) shares of the issuing company’s shares.

– Reason for capital reduction: Restructuring the company’s capital to amortize (100%) of the accumulated losses as on June 30, 2022

– Date of reduction: If the item is approved, the reduction decision will be effective on the company’s shareholders who own shares on the day of the extraordinary general assembly who are registered in the company’s shareholders’ register with the Securities Depository Center Company (Depository Center) at the end of the second trading day following the date of the extraordinary general assembly. Ordinary in which it was decided to reduce the capital

– Amending Article 7 of the Articles of Association relating to capital

– Amending Article 8 of the Articles of Association related to subscription for shares

Shareholders registered in the Tadawulaty services can vote remotely on the assembly’s items starting on Saturday, 01-10-2022 until the end of the time of the assembly.

Additional Information:

We refer to Article (150) of the Companies Law which states that:

• If the losses of a joint-stock company amount to half of the paid-up capital, at any time during the fiscal year, the company official or the auditor must immediately inform the Chairman of the Board of Directors, and the Chairman of the Board of Directors must inform the members of the Board The Board of Directors shall, within fifteen days of becoming aware of this, invite the extraordinary general assembly to meet within forty five days from the date of their knowledge of the losses to decide whether to increase or decrease the company’s capital – in accordance with the provisions of the Law – to the extent that the percentage of losses decreases to less than half of the paid-up capital, or the company is dissolved before the term specified in its articles of association.
• The company is considered dissolved by force of law if the extraordinary general assembly did not meet within the period specified in paragraph (1) of this article, or if it met and was unable to issue a decision in the matter, or if it decided to increase the capital in accordance with the conditions prescribed in this article and the subscription was not completed In each capital increase within ninety days from the issuance of the Assembly’s decision to increase it.