Asharqiyah Development Company announces that the Board of Directors in its meeting held on 22 March 2017 decided by majority to recommend to the Extraordinary General Assembly to reduce the Company's capital as follows:
1. The capital before the reduction of SR 75,000,000 and the capital after the reduction of SR 45,896,354 which constitutes a reduction of (38.80%).
2. The number of shares before the reduction is 7,500,000 shares and the number of shares after the reduction 4,589,635 shares.
3. Reduction will be 1 share per 2.577 shares.
4. The reason for the reduction of capital is to extinguish most of the accumulated losses.
5. Method of capital reduction: cancellation of 2,910,365 shares of the company.
6. Effect of capital reduction on the company's obligations: There is no effect of reducing the capital of the company on its financial obligations.
It worth mentioning that the capital reduction is subject to approval by the official authorities and the Extraordinary General Assembly.The appointment of the financial advisor will be announced as well as the submission of the capital reduction request to the Capital Market Authority.
In the event the Extraordinary General Assembly approves the capital reduction; the reduction decision shall be effective for all shareholders of the Company registered with the Securities Depository Center at the end of the day the Extraordinary General Assembly resolution was issued.The percentage of ownership of each shareholder in the company will not change due to the reduction in the number of shares. Any fractional shares that may result from the capital reduction will be dealt with in accordance with policies and procedures.
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.