Jamjoom Pharmaceuticals Factory Company announces providing a corporate guarantee to its Joint Venture in Algeria
| Element List | Explanation |
|---|---|
| Announcement Detail | Further to the announcement made by the Jamjoom Pharmaceutical Factory Company (the “Company”) published on the Saudi Exchange website on 13/01/1445 (corresponding to 31/07/2023G) in relation to the capital increase of its Joint Venture in Algeria, the Company announces its Board of Directors Approval on 21/11/2023 to provide a corporate guarantee to Al Salam Bank Algeria to support the issuance of a Shariah-Compliant short-term revolving banking facility with a total amount of One Billion Three Hundred and Sixty Million Algerian Dinar (DZD 1,360,000,000) corresponding to about Thirty Seven Million Eight Hundred Thousand Saudi Riyals only (SAR 37,800,000) (the “Banking Facility”).
The purpose of the Banking Facility is to finance the remaining payment of the acquisition of the pharmaceutical manufacturing facility regarding purchase of its inventory) and fund its short-term working capital requirements.
The corporate guarantee is in accordance with the Algerian Law and is in proportion to the Company’s shareholding in the Joint Venture, therefore, the Company will be guaranteeing Six Hundred and Sixty Six million Four Hundred and Thousand Algerian Dinar (DZD 666,400,000) corresponding to about Eighteen Million Five Hundred Thousand Saudi Riyals only (SAR 18,500,000).
The Company will keep its shareholders informed of further developments in this regard.
It is worth noting that the Company’s Board Members, Mahmoud Yousuf Jamjoom, Mohammed Yousuf Jamjoom and Ahmed Yousuf Jamjoom are related parties given that they each holds a board seat in the Joint Venture. |
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