Abdullah A. M Al Khodari Sons Company announces the latest developments regarding the Board recommendation to increase capital by issuing new shares in return for the company liabilities
Reference is made to the company announcement on 23/10/2017G regarding the recommendation of the Board of Directors to increase the company's share capital by issuing new shares against the Company liabilities in order to settle the amounts due and payable to the Company vendors and Abdullah A. M. Al Khodari Sons Investment Holding Company (major shareholder).
Based on the negotiations with the Company vendors and Abdullah A. M. Al-Khodari Sons Investment Holding Company, the parties have consented to subscribe to the increase in the Company's capital against the settlement of all or part of the outstanding amounts due to them.
The Board of Directors passed a resolution during its meeting held on 16/02/2018G, recommending to the General Assembly to increase the capital of the Company by up to SR 458,000,000 by issuing new shares in settlement of the Company liabilities as follows:
First: Recommendation to the Extraordinary General Assembly to increase the Company capital by up to SR 250,000,000. These new shares will be issued to the Company vendors and the capital increase will be used to settle all or part of the amounts due to the Company vendors concerned.
Second: Amended the recommendation of the Board of Directors announced on 23/10/2017G regarding Abdullah A. M. Al-Khodari Sons Investment Holding Company by recommending to the Extraordinary General Assembly to increase the Company capital by up to SR 208,000,000 instead of SR 135,000,000, whereby the new shares will be issued against the settlement of debts owed to the Abdullah A. M. Al Khodari Sons Investment Holding Company.
The above recommendation aims to improve the liquidity position of the company, which in turn will provide a greater margin to cover commitments and reduce the leverage ratio, improving the position of the Company and its future outlook.
The Board recommendations shall be conditional on obtaining the necessary approvals from the competent authorities and the Extraordinary General Assembly to increase the capital of the Company.
Any further future development regarding this matter will be announced in due course.