“Saudi Cables” cancels its recommendation to reduce the capital … and increase it to 346.7 million riyals
The Saudi Cable Company announced the decision of the Board of Directors on December 27, 2022 to amend the Board’s recommendation related to reducing the company’s capital to cancel the recommendation to reduce the capital, while keeping the recommendation to increase the capital by issuing priority rights shares to about 346.73 million riyals.
In a statement on “Saudi Tadawul”, today, Monday, the company clarified the details of the capital increase as follows:
– Capital before the increase: 66,729,060 riyals.
– The capital after the increase: 346 million 729 thousand and 60 riyals.
– The rate of increase in the capital: 519.61%.
– The number of shares before the increase: 6 million 672 thousand and 906 shares.
– The number of shares after the increase: 34,672,906 shares.
The company added that this recommendation was the result of a number of discussions with financial advisors, explaining that the board’s decision was to cancel its previous recommendation to reduce the company’s capital based on the developments in negotiation with a number of investors to buy some of the company’s debts in exchange for converting them into ordinary shares at nominal value, and developments in entering into procedures for reinstatement. Financial regulation.
She stated that maintaining the recommendation to increase capital by issuing priority rights shares was to provide the necessary liquidity to expand operations, noting that she would announce when there are any material developments regarding the capital raising file.
She pointed out that there are no costs associated with the event during the current period, and the financial impact will be announced later, if any.
And she indicated that if the procedures for increasing the company’s capital were completed in accordance with the recommendation of the Board of Directors to the extraordinary general assembly, this would reduce the percentage of accumulated losses to the company’s capital to less than 50% of its capital in accordance with the requirements of Article 150 of the companies’ system, as well as providing liquidity. cash to support operating capital and improve the company’s cash flows.
