Amiantit eliminates all accumulated losses

Logo of Saudi Arabian Amiantit Co.

Saudi Arabian Amiantit Co. said that its accumulated losses decreased to 0% of capital as of Feb. 14.

In a statement to Tadawul, the company said the measures taken to reduce its accumulated losses included logging accounting profits of SAR 482.5 million.

This positive development was attributed to the successful completion of procedures related to the transfer of subsidiary ownership to Alinma Bank. Additionally, the company was absolved of all financial obligations towards the bank, totaling SAR 572.7 million.

With these accounting profits, Amiantit fully absorbed its accumulated losses of SAR 216.3 million as of Feb. 14 and booked SAR 266.2 million in retained earnings as of that date.

With reference to the auditor's report on 2023 annual financials, which highlighted material uncertainty linked to the going concern due to accumulated losses, Amiantit clarified that with the amortization of all accumulated losses, the previously identified uncertainty regarding the going concern is no longer applicable.

In light of Amiantit's earlier acknowledgment that its accumulated losses had surpassed 50% of its capital, and in accordance with the prescribed procedures for listed companies facing accumulated losses at 20% minimum of capital, today's announcement renders the convening of an extraordinary general assembly meeting (EGM) unnecessary to deliberate on the company's going concern.

Furthermore, the company reaffirmed details regarding a settlement with the Saudi National Bank (SNB). Pending the EGM approval on the capital hike, execution of the settlement with SNB, and the resultant profit from this resolution, Amiantit anticipates total retained earnings to reach approximately SAR 422.7 million.

According to data available on Argaam, Amiantit recently completed the paperwork required for transferring the ownership of its subsidiary to Alinma Bank's investment fund. In return, the company was relieved of all obligations towards Alinma Bank, amounting to SAR 572.7 million. These obligations constitute about 50% of Amiantit’s total obligations owed to banks.