Thimar Development Holding Co.announces the Board's Recommendation to Reduce the Company's Capital and A Subsequent Capital Increase Through Rights Issue
| Element List | Explanation |
|---|---|
| Introduction | Thimar Development Holding Co announces that the Board of Directors decided to pass it on16-05-1445H Corresponding to 30-11-2023G, to recommend to the Extraordinary General Assembly Meeting to reduce The Company's Capital and Subsequently increase the Capital according to the following details |
| Date of Board Meeting | 2023-11-30 Corresponding to 1445-05-16 |
| Capital before decrease | 250,000,000 Saudi Riyal |
| Capital after decrease | 65,000,000 Saudi Riyal |
| Percentage of Capital decrease | 74 % |
| Number of Shares before Decrease | 25000000 |
| Number of Shares after Decrease | 6500000 |
| Reasons for the Capital Decrease | Restructuring the company's capital to write off the accumulated losses. |
| Method of Capital Decrease | Cancelling 18,500,000 shares of the company’s shares, (1) share 0.74 shares will be canceled for (1) share owned. |
| Impact of the Capital Decrease on the Company's Obligations, Operations or Operational, Financial or Organizational Performance of the Company | There is no impact of reducing the company's capital on its financial obligations. |
| Date of reduction | The End of the Second Trading Day after the Extra Ordinary General Assembly Meeting in which Decrease was Resolved |
| Approvals | The recommendation to reduce the company's capital is subject to the approval of the related official authorities and the approval of the extraordinary general assembly |
| Appointment of a Financial Advisor and the Submission of the Application for Capital Decrease to CMA | Appointing Wasatah Capital as the financial advisor regarding the capital reduction and capital increase and the Underwriter, Also, an announcement will be made upon submitting the company’s capital reduction application file to Capital Market Authority for approval. |
| Additional Information | The company's Board of Directors also recommended on 16 -05-1445H Corresponding to 30-11-2023G, The Board of Directors has recommended to the Extraordinary General Assembly, and after finalizing the process of capital reduction, to increase the capital by offering Rights Issue with value of SAR 195 million, so that the capital after the increase becomes SAR 260,000,000 the details of which are as follows:
Capital before the increase: SAR 65,000,000.
Capital after the increase: SAR 260,000,000.
Capital increase percentage: 300%
Number of shares before the increase: 6,500,000 shares
Number of shares after the increase: 26,000,000 shares
By increasing its capital, the Company aims essentially to maximize the company’s expansion capacity in investments to supporting the company operations according to the financial organization plan
The approval of the extraordinary general assembly on the process of increasing the company's capital by offering Rights Issue is conditional on the Company’s Extraordinary General Assembly approval of the proposed capital reduction.
The eligibility of subscription will be for the Shareholders holding the shares on the date of the Extraordinary General Assembly meeting in which capital increase through the issuance of rights issue was resolved and whose names appear in the register of the Issuer's Shareholders at the Depository Center at the end of the second trading day following the date of the General Assembly's Meeting.
We would also like to point out that process of capital increase is subject to the approval of the related official authorities and the Extraordinary General Assembly.
As mentioned above, Wasatah Capital will be the financial advisor for the process of the capital increase and the Underwriter. |
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