Makkah Construction and Development Co. — Capital/Financing Update 2023

Dec 20, 2023

Makkah Construction and Development Company announces the conclusion of a debt settlement agreement with Jabal Omar Development Company

4100 · 20/12/2023 15:36:49 · Announcement #77422 · View on Saudi Exchange

Makkah Construction and Development Company announces the conclusion of a debt settlement agreement with Jabal Omar Development Company

Element List

Explanation

Announcement Detail

Makkah Construction and Development Company (the creditor) announces the conclusion of a debt settlement agreement with Jabal Omar Development Company (the debtor) to transfer the debts owed to the company by issuing new shares to it in Jabal Omar Development Company. Through the potential deal, the company aims to settle the debts owed to it, which will It will have a positive financial impact for the benefit of the company's shareholders.

The debt settlement agreement with Jabal Omar Development Company concluded on 20/12/2023 AD correspondence 7/6/1445 H According to which the two parties agreed to settle the remaining outstanding debts amounting to (309,564,950) Saudi riyals (representing the remaining debt owed to the company by Jabal Omar Development Company, resulting from the company’s purchase of the cash share on behalf of real estate owners who did not complete their legal documents, according to what was stated in Subparagraph (b) of Clause First of Article Seven in the Jabal Omar Development Company’s Articles of Association) in exchange for issuing new shares in Jabal Omar Development Company (the number of shares issued will be determined based on the closing price of the trading day preceding the date of the extraordinary general assembly of the potential deal This is according to the provisions of the agreement. The main provisions of the agreement are the procedures and conditions that must be met by both parties (as applicable) to complete the potential deal, which mainly includes:

1- Jabal Omar Development Company to obtained the necessary regulatory approvals (specifically the approval of the Capital Market Authority and the Saudi Stock Exchange Company (Tadawul) for the purpose of issuing and listing new shares.

2- Obtaining any required approvals from other parties whose approval is required to implement the potential deal.

3- Obtaining the approval of the Extraordinary General Assembly of Jabal Omar Development Company for the potential deal.

The company clarifies that it is a related party to the potential deal as it is a shareholder with a large stake in Jabal Omar Development Company, and the company will announce any future developments in this regard if they become available.

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.