Tabuk Agricultural spends SAR 54 mln of rights issue proceeds

Tabuk Agricultural Development Co. (TADCO) said it spent SAR 54.4 million out of the total proceeds generated from its rights issue by the end of Q3 2017.

Costs related to the rights issue came in at SAR 14.9 million, against the SAR 16 million estimated in the prospectus, the company said in a statement to Tadawul on Monday.

A total of SAR 10.4 million was used for general corporate purposes versus a planned amount of SAR 11.8 million.

The company spent SAR 4.92 million on its crop production project in Sudan compared to SAR 140 million stated in the prospectus. The work was suspended due to legal issues related to land acquisition.

The agricultural firm has received positive promises from the Sudanese government regarding issuing usufruct contract in favor of the company. A new manager has been appointed and a four-stage plan was prepared for the project of which the first stage to begin in 2018 at a cost of SAR 10 million.

TADCO also spent SAR 3.69 million on its French fries plant, compared to SAR 38.6 million stated in the prospectus. The project is 31 percent complete.

About SAR 19.17 million of proceeds were used for the company’s mixed-fodder project. The company has completed 31 percent of the facility. The project was expected to consume SAR 26.69 million from rights issue proceeds.

In addition, SAR 1.41 million was spent on its olive-pressing plant, which is 21 percent complete.