Methanol Chemicals Co. — Capital/Financing Update 2021

Aug 10, 2021

Methanol Chemicals Co. Announces the Board's Recommendation to Increase the Capital by Offering Right Issues

2001 · 10/08/2021 08:07:16 · Announcement #64452 · View on Saudi Exchange

Methanol Chemicals Co. Announces the Board's Recommendation to Increase the Capital by Offering Right Issues

Element List	Explanation
Introduction	Methanol Chemicals Company announces that its Board of Directors has resolved in its meeting held on Monday, 01-01-1443 corresponding to 09-08-2021, to recommend to the Extraordinary General Assembly to increase the Company's capital through the issuance of rights issue according to the following details:
Date of Board Meeting	2021-08-09 Corresponding to 1443-01-01
Target Amount	SAR 550,491,370
Reasons for the increase	By increasing its capital, the Company mainly aims at financing and implementing its business plans and future projects, expanding and raising its activities and levels of domestic investments. It is worth mentioning that the Company obtained the Ministry of Energy’s approval for allocating the required feedstock to expand the Methanol plant in order to increase its output by around 100,000 tons. Such an increase will contribute to reduce production costs and raise financial revenues. Furthermore, the expansion of Methanol plant will let the Company start its future projects as announced on March 02, 2020 to align with the growth and economic changes occurring in the Kingdom of Saudi Arabia as part of its ambitious vision 2030. The Company also seeks to raise its financial solvency and decrease the borrowing rates and the costs incurred thereof.
Eligibility date	Shareholders holding shares on the date of the Extraordinary General Assembly meeting in which capital increase through the issuance of right issues was resolved whose names so appear in the register of the Issuer's Shareholders at the Depository Center at the end of the second trading day following the date of the General Assembly's Meeting.
Approvals	Approval of the related official authorities and the Extraordinary General Assembly.
Appointment of Financial Advisor and Submission of the Capital Increase Application File to CMA	Messrs./ Wasatah Capital Co. (Wasatah Capital) has been appointed as the financial advisor for the offering.

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.