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| Announcement Detail | Filling and Packing Materials MFG. Co. (FIPCO) announces the Board of Directors’ resolutions by circulation on Tuesday dated 10/11/1444H corresponding to 30/05/2023G, which was related to the subsidiary (FPC), as follows: |
1- Approve to transform the legal entity of FPC - in which FIPCO owns 100% of its paid-up capital of SR 18 million - from a limited liability company to a joint stock company.
2- approve to Set an authorized capital of SR 100 million.
3- Approve to increase the Paid-up capital from SR 18 million to SR 70 million, which will be financed from using some of the current account balances between partners.
This transformation will support FPC objectives aiming to future expansions, also it will maintain its stability and sustainability, and will support the company’s financial position, which supports increasing export sales and improves the credit relationship with some large foreign clients in order to increase the company's export share and in line with the needs of global markets.
This update will not have a material impact on the company's financial results, while the financial impact of the capital structure will appear in the company's financial statements as of the second or third quarter of the fiscal year 2023, depending on the company's ability to complete the relevant regulatory procedures with governmental authorities.
FIPCO will continue to take all measures that contribute to enhancing the company's ability to involve in new investments with the aim of activating the maximum benefit from the operational activities integration between FIPCO and its subsidiary, improving the efficiency, taking into account the rights of all stakeholders, and focusing on areas that have significant growth opportunities, which will contribute to enhancing the company's profitability and maximizing the value of shareholders' investments on the long run.
Any material developments in this regard will be announced in due course.
The Capital Market Authority and Saudi Exchange take no responsibility for the contents of this disclosure, make no representations as to its accuracy or completeness, and expressly disclaim any liability whatsoever for any loss arising from, or incurred in reliance upon, any part of this disclosure, and the issuer accepts full responsibility for the accuracy of the information contained in it and confirms, having made all reasonable enquiries, that to the best of their knowledge and belief, there are no other facts or information the omission of which would make the disclosure misleading, incomplete or inaccurate.