United Cooperative Assurance Co. announces the developments regarding the use of proceeds from the rights issue shares subscription which was held during 24-02-2015 to 16-03-2015 as following:

1. Actual used for proceeds from the rights issue shares subscription until 31 July 2016 compared with what was declared in rights issue prospectus:

a. Amount Proceeds from the capital increase of SR 210,000,000

b . Total direct and indirect expenses of increase capital SR 4,946,490

c. The net proceeds from the capital increase SR 205,053,510 .The amount was used as follows:

- Statutory deposit SR 21,000,000 in which represent 10% of the capital increase, amounting to SR 210,000,000.

- Increase the statutory deposit of SR 24,500,000 (from 10% to 15% of the paid-up capital of SR 490,000,000 ) and declared in Tadawul website in 13/07/1437H corresponding to 20/04/2016

- The remaining of amount SR 159,553,510 used to meet the requirements of the required solvency margin; part of it was invested in accordance with the regulations as follows:

- Deposits in local banks SR 75,800,000

- Investments in local funds SR 73,373,690

- Balance in the current account at a local bank SR 10,379,820

2. Deviations in actual used for proceeds compared with what was declared in rights issue prospectus:

Amount of SR 353,510 difference in expenses related to the capital increase, where the estimated cost of expenses for capital increase amount to SR 5,300,000 as stated in the prospectus. And this difference is due to the actual amounts of the expenses were lower than initial estimates.

 

The company would like to advise that as the company does not expect any change in the use of the capital proceeds compared to what has been announced above and there are no projects to be financed from these proceeds defined in the prospectus, the company will not make any further announcements on the use of these proceeds in the future.