Red Sea International Company announces the Board’s recommendation to reduce company's capital and then increase the company's capital through rights issue.
|Introduction||Red Sea International Company announces the Board’s recommendation to reduce company's capital and then increase the company's capital through rights issue.|
|Date of Board Meeting||2022-04-14 Corresponding to 1443-09-13|
|Capital before decrease||600,000,000|
|Capital after decrease||309,387,000|
|Percentage of Capital decrease||48.44 %|
|Number of Shares before Decrease||60000000|
|Number of Shares after Decrease||30938700|
|Reasons for the Capital Decrease||Restructuring the company's capital to write-off the accumulated losses and to support its future plans.|
|Method of Capital Decrease||Through cancellation of 29,061,300 shares, by reducing 1 share for every 2.065 shares|
|Impact of the Capital Decrease on the Company's Obligations, Operations or Operational, Financial or Organizational Performance of the Company||Nil|
|Date of reduction||The End of the Second Trading Day after the Extra Ordinary General Assembly Meeting in which Decrease was Resolved|
|Approvals||Approvals of relevant authorities and the Extraordinary General Assembly|
|Appointment of a Financial Advisor and the Submission of the Application for Capital Decrease to CMA||During the same Board meeting, it was resolved to appoint Al-Rajhi Capital as financial advisor for the capital decrease and increase. Also, an announcement will be made once the capital decrease application file is submitted to the Capital Market Authority for approval, in addition to any future developments in this regard.|
|Additional Information||During the same meeting, the Board of Directors recommended to the General Assembly – post the capital decrease – to increase the capital by SAR 150 million through rights issue, to become SAR 459,387,000 after the capital increase. Below are the details of the increase: |
Capital before increase: SAR 309,387,000
Capital after increase: SAR 459,387,000
Percentage of Capital increase: 48.48%
Number of Shares before increase: 30,938,700 Shares
Number of Shares after increase: 45,938,700 Shares
Reasons for the Capital increase: to support the working capital, strengthen the company's financial adequacy, establish a new manufacturing facility in the Central Region, develop the company’s capabilities in field of facility management and expand other activities.
Method of Capital increase: Addition of 15 million shares
Approvals: The recommendation to increase the company's capital is subject to the approval of the relevant authorities and the approval of the Extraordinary General Assembly
Eligibility: will be for shareholders holding shares on the date of the Extraordinary General Assembly meeting in which capital increase through the issuance of right issues is resolved, and whose names are listed 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 Meeting.
As stated above, Al-Rajhi Capital has been appointed for the rights issue process. Also, an announcement will be made once the capital increase application file is submitted to the Capital Market Authority for approval, in addition to any material developments in this regard.
The Capital Market Authority and Saudi Exchange take no responsibility for the contents of this disclosure, make no representations as to its accuracy or completeness, and expressly disclaim any liability whatsoever for any loss arising from, or incurred in reliance upon, any part of this disclosure, and the issuer accepts full responsibility for the accuracy of the information contained in it and confirms, having made all reasonable enquiries, that to the best of their knowledge and belief, there are no other facts or information the omission of which would make the disclosure misleading, incomplete or inaccurate.