Thimar Development Holding Company would like to announce to the shareholders the decision of the Board of Directors dated 09/06/1444 AH corresponding to 03/28/2023 AD to amend the recommendation of the Extraordinary General Assembly related to increasing the company’s capital by issuing rights issues at a value of one hundred million Saudi riyals (100,000,000). Saudi riyals instead of two hundred million Saudi riyals (200,000,000) Saudi riyals.

The Board of Directors also decided, on 09/06/1444 AH corresponding to 03/28/2023 AD, to recommend to the Extraordinary General Assembly to reduce the capital before the process of increasing the company’s capital, by canceling the number of nine million shares (9,000,000) shares of the company’s shares, so that the capital becomes after the reduction Ten million Saudi riyals (10,000,000) Saudi riyals

Firstly: Reduction of the company’s capital by ninety million (90,000,000) SAR:

- Capital before decrease: 100,000,000 SAR.

- Capital after decrease: 10,000,000 SAR.

- Percentage of Capital decrease: 90%.

- Reasons for the Capital Decrease: Restructuring the company's capital to write off the accumulated losses.

- Method of Capital Decrease: delete 9,000,000 shares of the company’s shares, (1) share will be reduced for every (1.11) shares.

- 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.

Secondly: increase in the company capital via rights issue by (100,000,000) SAR.

- Capital before the increase: 10,000,000 SAR.

- Capital after the increase: 110,000,000 SAR.

- Capital increase percentage: 1000%.

- Number of shares before the increase: 1,000,000 Shares

- Number of shares after the increase: 110,000,000 shares

By increasing its capital, according to the financial organization plan, the offering proceeds will be used to supporting the company operations, including the payment of Creditors.

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.

Wasatah Capital will be the financial advisor for the process of the capital increase and the Underwriter. An announcement will also be made when submitting the company’s capital reduction circular to the Capital Market Authority for its approval.