Edarat Communication BOD recommends capital increase to ‎SR12.6 mln

Edarat Communication and Information Technology Co. (EDARAT) announces the Board of Directors’ decision on 26-12-2022 AD corresponding to 02-06-1444 AH to submit a recommendation to the company’s extraordinary general assembly to increase the capital from SR 6.3 million to SR 12.6 million (100%) by capitalizing part of the reserves and retained earnings by granting one share for each one shares.

The company explained that the number of shares before the increase was 630 thousand shares, and after the increase it will become 1.2 million shares, and aims to raise the capital to support and strengthen the capital base and future activities, which contributes to achieving good growth rates during the coming years as a continuation of the company’s policy.

The eligibility will be for the shareholders who own the shares on the maturity date and are registered in the issuer’s shareholder register at the Depository Center at the end of the second trading day following the maturity date.

In the event that there are fractional shares, the fractions will be collected in one portfolio for all the shareholders and sold at the market price, then their value will be distributed among the shareholders eligible for the grant, each according to his share within a period not exceeding 30 days from the date of determining the new shares due to each shareholder.

The grant is also conditional on obtaining the approval of the official authorities and the extraordinary general assembly on the increase in the capital and the number of shares granted.