| Element List | Explanation |
|---|---|
| Introduction | With reference to the announcement of the Tourism Enterprises Company “Shams” on 19/04/2021 AD regarding the Board of Directors’ recommendation to reduce the company’s capital, and then increase the company’s capital through a rights issue. In view of the losses that were recorded according to the preliminary financial statements for the second quarter of 2021 AD |
Tourism Enterprises Company announces that the Board of Directors decided on Tuesday 24/08/2021 to amend the recommendation to reduce the company's capital to be as follows:
A- The company's capital before the reduction is 101,500,000 Saudi riyals, the capital after the reduction is 52,566,930 Saudi riyals, with a reduction rate of 48.21% of the company's capital.
B- The number of shares before the reduction is 10,150,000 shares, the number of shares after the reduction is 5,256,693 shares.
C- Reason for capital reduction: amortization of accumulated losses in the amount of 48,933,070 Saudi riyals.
Capital reduction method: 4,893,307 shares of the company’s shares will be canceled, one share will be reduced for every (2,07426) shares
E - The effect of the capital reduction on the company's obligations: After the capital reduction, the entire accumulated losses will be amortized, and there is no material impact from the reduction of the company's capital on its financial and operational obligations or the company's financial, operational or organizational performance.
f- Date of reduction: the end of the second trading day following the convening of the extraordinary general assembly in which it was decided to reduce the capital.
The company’s board of directors also decided in the same meeting of the board of directors on 23/08/2021 AD corresponding to 01/15/1442 AH, to amend the recommendation to the Extraordinary General Assembly, and after completing the capital reduction process, it will recommend later to increase the company’s capital through a rights issue of 315,401,580 riyals Saudi, to be as follows:
Capital before the increase: 52,566,930 Saudi riyals
Capital after increase: 367,968,510 Saudi riyals
Capital increase percentage: 600% (issuance of 6 shares for each share)
Number of shares before the increase: 5,256,693
Number of shares after increase: 36,796,851
The reason for the capital increase: Supporting working capital, enhancing the company’s financial solvency, rehabilitating the current resort located in the Eastern Province, and entering into investments in the tourism sector in support of the Kingdom’s vision 2030, which aims to increase and develop hospitality facilities and other tourism services in line with the future plans of the General Entertainment Authority.
Method of capital increase: Offering rights shares with a value of (315,401,580) Saudi riyals.
A- The company's capital before the reduction is 101,500,000 Saudi riyals
B- The capital after the reduction is 52,566,930 Saudi riyals, with a reduction of 48.21% of the company's capital.
C- The number of shares before the reduction is 10,150,000 shares.
D- The number of shares after the reduction is 5,256,693 shares.
Capital Raising:
A- Capital before the increase: 52,566,930 Saudi riyals
B- The capital after the increase: 367,968,510 Saudi riyals The percentage of the capital increase: 600% (issuing 6 shares for each share)
C- Number of shares before the increase: 5,256,693 shares.
D - Number of shares after the increase: 36,796,851 shares.
The company is working with the previous financial advisor appointed on 17/9/2019 (Al-Jazira Capital Company) to reduce and increase the capital in accordance with the updated mechanisms to modify the capital reduction ratio from 34% to 48.21% and the consequent amendments in the agreement.
Any developments will be announced to shareholders 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.