Al Hassan Ghazi Ibrahim Shaker Co. Announces updates on Increase of the Company’s Capital by Offering Right Issues File at CMA

15 November 2022 08:06 AM

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Element List	Explanation
Introduction	References are made to the announcements made by Alhassan Ghazi Ibrahim Shaker Company (“Shaker Group”) dated on 12/02/1443 corresponding to 19/09/2021 and revised on 12/05/1443 corresponding to 16/12/2021 regarding the recommendation of the Company’s Board of Directors to the Extraordinary General Assembly to increase the company’s capital by offering rights issue shares with a value of (249,000,000) Saudi Riyals. Reference is also made to the announcement of the company dated on 19/05/1443 corresponding to 23/12/2021 regarding its submission of the application file for approval to increase the company's capital by offering of rights issue to the Capital Market Authority (CMA) which was approved and announced by CMA on 30/10/1443 corresponding to 31/05/2022. Alhassan Ghazi Ibrahim Shaker Company would like to announce that the Board has decided to withdraw its recommendation to the Extraordinary General Assembly and cancel the offering of rights issue shares due to: 1-The Company’s improvement in its financial position and increase in its operating cash flow 2-The Company’s settlement of long-term debt 3-The Company’s adequate access to local banking facilities that will fuel its future growth plans This decision will have no material impact neither on Shaker’s consolidated financial results nor its shareholders.
Date of Announcing the Application on Tadawul Website	2021-12-23 Corresponding to 1443-05-19
Date of Submitting the File	2021-12-23 Corresponding to 1443-05-19
Application Status at CMA	The application was approved and announced by CMA on 30/10/1443 corresponding to 31/05/2022.
Other Substantial Updates	The Board has decided to withdraw its recommendation to the Extraordinary General Assembly and cancel the offering of rights issue shares. This decision will have no material impact neither on Shaker’s consolidated financial results nor its shareholders.
Additional Information	The Company’s Board of Directors reassessed thoroughly and carefully its previous recommendation regarding the increase of its capital by offering rights issue shares with a value of (249,000,000) Saudi Riyals, and decided, that it is in the best interest of the company’s shareholders, to withdraw its recommendation to the Extraordinary General Assembly and cancel the offering of rights issue shares. As part of its ongoing fiduciary duty, the Board of Directors has reassessed the financial position of the company and it has determined that the capital increase through the issuance of right issue shares is no longer required at this point in time due to the Company’s robust financial and operational performance, its strong cash position and healthy balance sheet. The company’s capital remains: SAR 482,334,000 The company’s number of shares remain: 48,233,400 shares There is no impact on the Company’s shareholders Shaker’s board of directors will continuously reassess all future capital requirements to achieve the Company goals.

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