Saudi Cable Co. Announces Measures to be Taken and Time Frames after the Accumulated Losses Thereof Reached 63.01 % of the Capital

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IntroductionReference to Saudi Cable Company announcement on 01/02/2022 regarding its accumulated losses reaching 63.01% of the capital, Saudi Cable Company announces about taking the required legal procedures in this regard.
Date of the Posting the Company’s Announcement that the Accumulated Losses Thereof Reached 50% or more of its Capital on Tadawul’s Website2022-02-01 Corresponding to 1443-06-29
Date of Notifying the Board of Directors with the Accumulated Loss2022-01-31 Corresponding to 1443-06-28
Date the Period given to the Board to Invite the Extraordinary General Assembly for A Meeting Ends as per Article 150 of the Companies Law2022-04-01 Corresponding to 1443-08-29
The Deadline for Convening the Extraordinary General Assembly to Address the Accumulated Losses as per Article 150 of the Companies Law2022-07-29 Corresponding to 1443-12-30
Non Convening of the Extraordinary Meeting within 45 Days from Board of Directors Knowledge of the Loses or if the Meeting was Convened but No Decision is TakenPursuant to the Royal Order No. (15016) on 16/03/1442H, regarding of holding some clauses of the Companies’ Law issued by Royal Decree No. (M/3) on 28/01/1437H, the work with Paragraph No. (2) of Article No. (150) of Companies’ Law has been suspended, which indicates that in case on non-conveying of the Extraordinary General Assembly within 180 days from the date of it came to the knowledge of Board of Directors regarding the accumulated losses (which will expire on (29/07/2022), or in case the General Assembly not resolved to take a decision of the matter, the Company will be lapsed by the force of the law.
Additional InformationThe reason for the losses is mainly due to the losses resulting from the following operations and effects in the income statements for the year 2021:

1. Lower volume in current period as compared to the same period of last year due to unavailability of the working capital in order to secure inputs for the production.

2. Increase in the finance cost in current period compared to the same period of the last year as a result of restructuring of some previous debts.

3. Decrease of other incomes in current period as compared to the same period of the last year.

4. Allocating provision for the deferred tax associated with a subsidiary Company in Turkey.

Noting that, the meeting of the Extraordinary General Assembly will be held by God Willing at 06:30 p.m. on (Wednesday), 8 Rajab 1443H, corresponding to 9 February 2022, via means of modern technology, regarding the decrease and the increase of the capital as included in the items of the Agenda