Attached Announcement of Tourism Enterprises Company "Shams" on the recommendation of the Board of Directors to reduce the capital of the company then increase the capital of the company through Priority shares rights

Element List	Explanation
Introduction	"Shams" company announces the issuance of the Board of Directors decision to pass on Thursday 15/04/2021 (H) to recommend to the Extraordinary General Assembly at its next meeting to reduce the company's capital, in order to extinguish the accumulated losses, which amounted to (34,510,000.00) Saudi riyals, i.e., 34% of the capital. The amount of the company’s capital is (101,500,000.00) Saudi riyals, so the company’s capital after the reduction becomes (66,990,000.00) Saudi riyals.
Date of Posting the Previous Announcement of Development on Tadawul's Website	2019-09-18 Corresponding to 1441-01-19
URL of the Previous Announcement	Click Here
Change on the Development	The number of its shares after the reduction will be as follows:

Shares before reduction: 10,150,000 shares

Shares after reduction: 6,699,000 shares

Annulated shares to extinguish losses: 3,451,000 shares.

Number of shares the closest to one share Financial Impact on the change There is no impact from the capital reduction on the liabilities, operations, or financial, operational, or organizational performance of the company Additional Information *Date of reduction: The end of the second trading day following the holding of the extraordinary general assembly in which the capital will be reduced, which will be determined later

* Approvals: Approval of the official authorities and the extraordinary general assembly of the company.

Appointing a financial advisor and submitting a capital reduction request file from the Authority: "Al-Jazira Capital" continues as a financial advisor regarding capital reduction and raising capital. The disclosure will be made to shareholders upon submitting the capital reduction file to the Capital Market Authority to obtain its approval.

Concerning raising company's capital, the company is still working to find and evaluate suitable investment opportunities.

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.