Saudi Cable Company announces the latest developments for the announcement of the Board of Directors recommendation to reduce and then increase the Company’s capital by offering priority rights shares
| ELEMENT LIST | EXPLANATION |
|---|---|
| Introduction | Referring to Saudi Cable Company’s announcement on 23/03/1444H corresponding to 19-10-2022, of the Board of Directors’ recommendation to reduce and then increase the capital of the Company by offering priority rights shares; Saudi Cable Company wishes to announce to the shareholders the decision of the Board of Directors on 03/06/1444H corresponding to 27/12/2022 to amend the Board’s recommendation of reducing the capital of the Company, to abolish the recommendation of reducing capital while maintaining the recommendation to increase capital by offering priority rights shares. So the Board’s recommendation after amendment becomes: increase the company’s capital offering priority rights, as follows: Capital before the increase: 66,729,060 riyals Capital after the increase: 346,729,060 riyals Capital increase percentage: 519.61% Number of shares before the increase: 6,672,906 shares Number of shares after the increase: 34,672,906 shares This recommendation was the result of several discussions with the financial advisors, and the Board’s decision to cancel its previous recommendation to reduce the company’s capital based on the developments, in negotiation with a number of investors to purchase some of the company’s debts in exchange for converting them into ordinary shares at the nominal value and company’s debts in exchange for converting them into ordinary shares at the nominal value and developments in the financial restructuring procedure, the retention of the recommendation to increase capital by offering priority rights shares was to provide the liquidity necessary to expand operational processes. The company will make the announcement when there are any substantial developments with respect to the capital raising file. The Company also wishes to clarify to the valued shareholders that if the procedures to increase the Company’s capital are completed, in accordance with the recommendation of the Board of Directors to the Extraordinary General Assembly, it would reduce the ratio of accumulated losses of the Company to below 50% of its capital, in line with the requirements of article 150 of the Corporate Regulations, as well as providing cash to support operating capital and improve the Company’s cash flow. |
| Previous Announcement | Saudi Cable Company announces the Board of Directors’ recommendation to reduce the company’s capital and then increase the company’s capital by offering rights shares |
| Date of Previous Announcement on Tadawul’s Website | 2022-10-19 Corresponding to 1444-03-23 |
| Percentage of fulfilled achievement | N/A |
| Event’s Expected Completion Date | It is difficult to determine the expected date of completion of this event at this time. |
| Reasons for Exceeding the Announced End Date | N/A |
| The costs associated with the event, and if they have changed or not with indication of the reasons. | There are no costs associated with the event during the current period and the financial impact will be disclosed at a later date. |
| Impact of the Delay on the Company’s Financial Results | N/A |
| Additional Information | The company will announce any substantial developments in this regard. |
