Red Sea International says accumulated losses at 15.78% of capital

Logo of Red Sea International Co.

Red Sea International Co. announced today, Aug. 8, that based on the reduction of accumulated losses by SAR 297.66 million, the adjusted ratio of accumulated losses to the capital is 15.78%.

In a statement to Tadawul, the company said that the H1 2022 financial results are based on a capital of SAR 600 million.

Following the disclosure of the H1 2022 financials, Red Sea International held an extraordinary general assembly meeting (EGM) on July 24, during which the capital reduction was approved.

Accordingly, the company’s share capital was reduced from SAR 600 million to SAR 302.34 million, and the accumulated losses reduced by 297.66 million.

The capital reduction will lead to the cancellation of 29.77 million shares, or one share for every 2.016 shares.

In July, Red Sea International’s shareholders approved the board’s recommendation to reduce the company's capital from SAR 600 million to SAR 302.34 million, at 49.61% of the capital, Argaam reported.

Earlier, as part of its disclosure of H1 2022 financials, the company said that its accumulated losses by June 30, 2022, amounted to SAR 357.1 million, or 59.52% of the capital.