Correction announcement from Tabuk Agricultural Development Co, regarding the company announces the Decrease of its Accumulated Losses to 9 % of the Capital

Element List	Explanation
Date of Publishing the Previous Announcement Sought to be Corrected on Tadawul's Website	2021-05-20 Corresponding to 1442-10-08
URL of the Previous Announcement	Click Here
Incorrect statements in the previous announcement	- Decrease of its Accumulated Losses to 9 % of the Capital

- The third paragraph under (The results) contained in the Arab auditor's report attached to the announcement Correct Statement Tabuk Agricultural Development Co, announces that :

( Decrease of its Accumulated Losses to 5.6% of the Capital)

The company explains the following:

Introduction:

Following to the announcement of the Tabuk Agricultural Development Company on 04-05-2021 AD corresponding to 09-22-1442 AH, regarding the company's board of directors' decision dated 03/05/2021 to use the statutory reserve of (68,019,821 Saudi riyals) sixty-eight million and nineteen thousand eight hundred twenty-one Saudi riyals only to amortize part of The accumulated losses according to the audited consolidated financial statements as of December 31, 2020 AD, amounting to (86,545,066 Saudi riyals) eighty-six million five hundred and forty-five thousand and sixty-six Saudi riyals only, which represents 35.8% of the capital

The company wishes to announce a decrease in its accumulated losses amounting from (90,035,159 Saudi riyals) ninety million and thirty-five thousand one hundred and fifty-nine Saudi riyals only, to only (22,015,338) Saudi riyals only twenty-two million and fifteen thousand three hundred and thirty-eight Saudi riyals only, representing a percentage of Its amount is 5.6% of the capital as in the consolidated financial position (unaudited) on 03/05/2021 and included in the attached chartered accountant report issued on 19/05/2021 AD.

Date of accumulated losses decrease:

03/05/2021 – 21/09/1442H

Amount of the Accumulated Losses:

SAR (22.015.338)

Measures Taken by the Company to Decrease Accumulated Losses:

Restructuring the shareholders' equity in the company by amortizing an amount of SAR (68.19.821) from the accumulated losses through the full usage of statutory reserve, thereby the losses to capital ratio decreased from 35.8% to 5.6% .

The reduction of the statutory reserve will not have an impact on the Cash Liquidity of the company, in addition to that there will be no impact on the net shareholders' equity and liabilities of the company.

Attached Auditor's Report showing the Financial Position of the Company after the Decrease of the Accumulated Losses. Additional Information 1. The reason for the correction of the company’s announcement on May 20, 2021 AD is due to the computation of the accumulated losses percentage (9%) based on the previous capital amounting to 241767000 Saudi riyals before the increase, And after the capital increase on 06/April/2021 AD, the amount of the capital increase was deposited in the company's accounts at a later date from the date of the Board's decision on 03/May/2021 AD, which is to using the statutory reserve to amortize part of the accumulated losses

2. Attached the corrected Auditor's Report Attached Documents

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