Tihama submits a request to open the financial reorganization ‎procedure ‎

Reference to the company’s announcement on Tadawul website on 31-08-2022 regarding the latest developments for the company’s announcement of an amendment to the Board of Directors’ recommendation to reduce the company’s capital and then increase it through the issuance of rights issue shares and the publication on the Tadawul website on 08-02-2022 regarding The Board of Directors’ decision dated 02-07-2022 to amend the Board’s recommendation to the Extraordinary General Assembly to increase the company’s capital by an amount of SAR 350,000,000 through the issuance of rights shares.

After the amendment, the Board’s recommendation becomes:

– Reducing the company’s capital by SAR125,000,000 by canceling shares

– And then increasing the capital by SAR 350,000,000 by offering priority rights shares

And The company’s implementation of the first part of the Board of Directors’ recommendation to reduce the company’s capital by an amount of 125,000,000 Saudi riyals in accordance with the resolution of the Extraordinary General Assembly held on 23-02-2022 by canceling shares to extinguish part of the accumulated losses.

And the company’s announcement on the Tadawul website on 19-09-2022 regarding submitting the file to increase the company’s capital by offering priority rights shares to the Capital Market Authority

And the approval of the Capital Market Authority on the company’s request to increase the company’s capital by an amount of SAR 350 million, which was published on the Tadawul website on 06-10-2022

And the company’s announcement published on the Tadawul website on 28-08-2022 regarding the measures to be taken and the time limits for them after its accumulated losses reach 63.6% of the capital, which includes a reference to the last day of the Extraordinary General Assembly to address the accumulated losses as stated in Article 150 From the Companies Law, which expires on 08-10-2022

In order to preserve the rights of shareholders and the continuity of the company, Tihama Company Advertising, Public Relations and Marketing Company announces that it has submitted a request to open the financial reorganization procedure to the competent court, based on the Company’s board of directors’ resolution in their meeting held on 06-10-2022.

It should be noted that the registration of the application for opening the financial reorganization procedure – as previously mentioned – exempts the company from applying the provisions of the Companies Law regarding accumulating losses reaching 50% or more of the capital. Where the request to open the company’s financial reorganization procedure was registered before the expiry of the period specified in Article 150 of the Companies Law.

The company would like to emphasize to the shareholders that it is continuing to work on completing the statutory requirements to increase the company’s capital in accordance with the recommendation of the company’s board of directors to the company’s extraordinary general assembly to increase the company’s capital by offering rights shares worth 350 million Saudi riyals, which was approved by the Capital Market Authority.

Financial Impact: It is currently impossible to determine the financial impact that may result from registering the application for the opening of the company’s financial reorganization procedure, and this impact – if any – will be disclosed at the time.