Takween cuts accumulated losses to 29.53% of capital

Takween Advanced Industries Co. reduced its accumulated losses from 42% as on Dec. 31, 2023, to 29.53% as on March 31, 2024, of the current capital amounting to SAR 764.6 million, according to a statement to Tadawul.

The measures the company adopted to cut the accumulated losses included implementing the board’s proposal in March 2023 to increase capital by SAR 300 million via a rights issue, the statement added.

Takween’s shareholders approved the capital increase via a rights issue during the extraordinary general meeting (EGM) held on Feb. 13. The relevant measures were finalized in March.

In the offering prospectus, Takween stated that the issue proceeds will be utilized in the purchase of new machinery and equipment to develop the existing production lines, pay back loans, and finance the working capital.

This will help to offset the accumulated losses and boost the company’s financial position. Takween indicated it has already started the implementation of these measures upon obtaining the proceeds.

To review the auditor’s report on balance sheet after cutting the accumulated losses: