MEPCO GA discusses BOD recommendation to increase capital to SR666.6 mln through granting free shares

The Board of Directors of Middle East Paper Co (MEPCO) invited the shareholders to participate and vote in the Extraordinary General Assembly meeting (the first meeting), which is scheduled to be held by means of modern technology, on Thursday 24/11/2022.
General Assembly Meeting Agenda:
1. Voting on the Board’s recommendation to increase the Company’s capital by issuing bonus shares to its shareholders as follows:
a. The total amount of the increase is SR166,666,660
b. The capital before the increase is SR500million, and the capital after the increase will become SAR 666,666,660; an increase of (33,3%).
c. The number of shares before the increase is 50,000,000 shares, and the number of shares after the increase will become 66,666,666 shares.
d. The objective of the increase is to support the company’s financial position and future growth plans.
e. The increase will be through capitalizing SR166,666,660 from the retained earnings via granting (1) share for each (3) share owned by the shareholder at the eligibility date.
f. If the item is approved, eligible shareholders are those holding shares on the day of convening the Extra-Ordinary General Assembly and who are registered in the shareholders’ registry with the Securities Depository Center Company (“Edaa”) at the end of the second trading day following the eligibility date. In case of shares fractions, they shall be collected in one portfolio for all shareholders, then sold at market price, and their value shall be distributed to eligible shareholders as per their shares, within a period not exceeding (30) days from the date of determining the outstanding shares for each shareholder.
g. Amending (Article No 7) of the Company’s bylaws relating to capital.
Shareholders registered in Tadawulaty Services are entitled to vote on the items of the General Assembly meeting agenda online starting from 20/11/2022 until the end of the Assembly meeting.
Eligibility for Attendance Registration and Voting Ends upon the Convenience of the General Assembly’s Meeting. Eligibility for Voting on the Meeting Agenda Ends upon the Counting Committee Concludes Counting the Votes
Quorum for Convening the General Assembly’s Meeting For the validity of the meeting of this assembly, the presence of a number of shareholders representing at least 50% of the capital is required, according to the text of Article (33) of the company’s bylaws. In the event that this quorum is not available at the first meeting, the second meeting will be held an hour after the end of the period specified for the first meeting, and the second meeting will be valid if attended by a number of shareholders representing 25% of the capital.