Red Sea International accumulated losses reached 57.04 % of capital

Red Sea International Co. announced that its accumulated loses reached 57.04% of its capital, clarifying that the increase in accumulated loss attributable to Shareholders of the Company has increased to SAR 172.46M as of 31st December 2022 due to the absorption of non-cash losses (impairments and provisions) arising from international operations mainly from Ghana and Malaysia, decrease in revenues and increase in general and administration expenses.

The Board recommended starting the required procedures and following the relevant laws and regulations regarding companies whose losses exceeded 50% of the capital in terms of disclosing and preservation of shareholders’ rights and interests.

Procedures and instructions applicable to companies listed in the Saudi Capital Market whose accumulated losses reach 20% or more out of the capital thereof will be applied

Additional Information:

The above dates are set according to the revised Company Law’s Article 132, which stipulates on:

If the losses of a joint-stock company amount to half of the issued capital, the board of directors shall, within 60 days from the date of its knowledge thereof, announce the losses and the recommendations relating thereto and shall, within 180 days from said date, call for an extraordinary general assembly meeting to consider the continuation of the company by taking measures necessary to resolve such losses or the dissolution of the company.