Amiantit accumulated losses reaches 59.53% of capital

 Saudi Arabian Amiantit Co.’s accumulated losses reached SAR 205.09 million as of Sept. 30, 2020 representing 59.53% of its SAR 344.517 million capital.

The board of directors, being notified of the company’s accumulated losses on Nov. 5, 2020, can invite shareholders to attend the EGM no later than Nov. 20, the company said in a bourse statement.

The company will face termination by Dec. 20, 2020, under the Saudi Companies Law, if it fails to hold an extraordinary general meeting (EGM) within 45 days from the date its board of directors was informed of losses, or shareholders fail to pass a resolution, the statement added.

Shareholders will be able to discuss the issue of accumulated losses during the EGM, slated for Dec.1, the statement also said, adding that the accumulated losses will automatically be decreased to less than 50% of the capital if the shareholders approve the capital hike during the EGM, which will allow the continuation of expansion plans.

According to data compiled by Argaam, shareholders will vote on a 41.95% capital cut to SAR 200 million from SAR 344.52 million through the cancellation of 14.45 million shares, during the extraordinary general meeting (EGM) to be held on Dec. 1, 2020.