Thimar board recommends 90% capital cut to SAR 10 mln, amends capital hike recommendation

A branch of Thimar

Thimar Development Holding Co.’s board of directors recommended on March 28, to cut capital to SAR 10 million, prior to the proposed capital increase, through writing off nine million shares, the retailer said in a statement to Tadawul. 

 

Capital Reduction Details

Current Capital

SAR 100 mln

Number of Shares

100 mln

New Capital

SAR 10 mln

Number of Shares

1 mln

Percentage of Reduction

 90% (1 share for every 1.11 shares)

Reason

Restructuring capital to offset accumulated losses.

Method

Writing off 9 mln shares
 

In addition, the board amended its recommendation to increase capital through a SAR 100 million rights issue, instead of SAR 200 million.

 

Capital Increase Details

Pre-Increase Capital

SAR 10 mln

Number of Shares

1 mln

Post-Increase Capital

SAR 110 mln

Number of Shares

11 mln

Percentage of Increase

1000% (10 shares for each share)

Method

10 mln share issue

Reason

Supporting the company's activities and paying creditors

Record Date

Shareholders of record on the date of the EGM that decides to increase capital and those registered with Edaa on the second trading following the date of the EGM

 

The capital hike is subject to the competent authorities’ and the shareholders’ approval during the next extraordinary general meeting (EGM).

 

Wasatah Capital was appointed as a financial advisor and underwriter for the capital cut, as well as the capital increase, the statement added.

 

Updates regarding the submission of the capital increase request to the Capital Market Authority (CMA) will be disclosed.

 

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