Thimar Development Holding Co. Announces an update on Board of Directors recommendation to increase company's capital by rights issue

Element List	Explanation
Introduction	Referring to the announcement of Thimar Development Holding Company dated 18-10-1444H corresponding to 08-05-2023G regarding the Board of Directors' recommendation to increase the capital by offering priority shares.

Thimar Development Holding Company would like to inform its shareholders of the Board of Directors' decision dated 01-12-1444H corresponding to 19-06-2023G to amend the previous recommendation to the Extraordinary General Assembly regarding the increasing the capital by offering priority shares.

The previous recommendation, which was announced on 18-10-1444H corresponding to 08-05-2023G , was to "cancel the recommendation to reduce the capital while continuing to increase the capital by offering priority shares worth SAR 100,000,000 to become SAR 200,000,000 with 20,000,000 shares"

The Board of Directors' recommendation after the amendment is to:

Increasing the capital by issuing priority rights shares worth SAR 150,000,000 so that the capital after the increase becomes SAR 250,000,000 with 25,000,000 ordinary shares. Previous Announcement Board of Directors recommendation to increase company's capital by rights issue Date of Previous Announcement on Tadawul's Website 2023-05-08 Corresponding to 1444-10-18 Percentage of fulfilled achievement Not applicable Event's Expected Completion Date It cannot be determined at this time Reasons for Exceeding the Announced End Date Not applicable The costs associated with the event, and if they have changed or not with indication of the reasons. There are no costs associated with the event during the current period and the financial impact will be announced later if any Impact of the Delay on the Company's Financial Results Not applicable Additional Information The Board of Directors would like to clarify to the shareholders that the Board's recommendation has been amended as follows:

Increase the capital by offering priority shares worth SAR 150,000,000.

-Increase the company's capital to become a 150% increase.

-Increase the capital by SAR 150,000,000 by issuing 15,000,000 priority shares.

-Capital before the increase: SAR 100,000,000.

-Company's capital after the increase: SAR 250,000,000.

-Number of shares before the increase: 10,000,000 shares.

-Number of shares after the increase: 25,000,000 shares.

-Reason for increasing the capital: The company intends to implement a financial restructuring plan, where the proceeds of the offering will be directed to support the company's activities and pay off its creditors.

Method of increasing the capital: Issuing 15,000,000 shares at a rate of 1.5 share for every 1 share.

Subscription entitlement: Subscription entitlement will be for shareholders who own shares on the day of the Extraordinary General Assembly, which decided to increase the capital by offering priority shares, and whose names appear in the company's shareholder register at the end of the second trading day following the date of the Extraordinary General Assembly, which will be determined later.

Approvals: The recommendation to increase the company's capital is subject to the approval of the relevant regulatory authorities and the Extraordinary General Assembly.

An announcement will be made later when the company's capital increase file is submitted to the Capital Market Authority for approval.

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.