Saudi Industrial Export Co. — Capital/Financing Update 2021

Dec 27, 2021

Saudi Industrial Export Company (Sadirat) reported on the latest developments to recommend to the Board of Directors to increase the company's capital by offering priority rights shares.

4140 · 27/12/2021 09:19:24 · Announcement #66084 · View on Saudi Exchange

Saudi Industrial Export Company (Sadirat) reported on the latest developments to recommend to the Board of Directors to increase the company's capital by offering priority rights shares.

Element List	Explanation
Introduction	Referring to the company's announcement on 10-11-2020AD regarding the board's recommendation to increase the company's capital by offering priority rights shares.

The Saudi Industrial Export Company (Sadirat) would like to announce to the shareholders the decision of the Board of Directors dated 22/05/1443 AH corresponding to 12/26/2021 AD to amend the Board’s recommendation related to increasing the company’s capital to the Extraordinary General Assembly to reduce the company’s capital and then increase the capital The company's money after the reduction. Previous Announcement board recommendation to increase the company's capital by offering priority rights shares Date of Previous Announcement on Tadawul's Website 2020-11-10 Corresponding to 1442-03-24 Percentage of fulfilled achievement It doesn't apply. Event's Expected Completion Date It's hard to say when the event is currently expected to end. Reasons for Exceeding the Announced End Date It doesn't apply. The costs associated with the event, and if they have changed or not with indication of the reasons. There are no costs associated with the event during the current period and the financial impact will be announced later if any. Impact of the Delay on the Company's Financial Results It doesn't apply. Additional Information The Board of Directors would like to explain to shareholders why its recommendation to the Extraordinary General Assembly to reduce the company's capital and then increase the capital until the expiry of the deadline granted to listed joint stock companies on the suspension of certain provisions of the new corporate system articles, which expire at 01-08-1443E on the basis of Royal Order No. (15016) and date 16-03-1442Ah. In addition, the CMA has not decided to date on the results of the application file for the increase of the company's capital submitted to the Authority on 31-12-2020, and the application is still under consideration by the Authority.

Accordingly, the Board's recommendation willbe amended to reduce the company's capital and then increase the capital after the reduction, and the recommendation will be amended as follows:

First: Recommend a66.66% reduction in the company's capital to 21,600,000 riyals:

- Current capital: SAR 64,800,000.

- Capital after reduction: SAR 21,600,000.

- Current number of shares: 6,480,000 shares: 6,480,000 shares

- Number of shares after reduction: 2,160,000 shares

- The number (2 shares) will be written off for each (3 shares).

- Reason for the reduction: Extinguishing the company's accumulated losses of 43,200,000 riyals.

Second: Recommending an increase in the company’s capital after the reduction of 800% to become the company's capital after the increase of 194,400,000 riyals:

- Capital after reduction: SAR 21,600,000.

- Capital after increase: SAR 194,400,000.

- Number of shares after reduction: 2,160,000 shares

- Number of shares after increase: 19,440,000 shares

- A number of (8 shares) will be issued priority rights for each share.

- The reason for the increase: raising solvency and strategic expansion of the company.

- There is also no change to the appointment of the financial advisor, as Al Khair Capital was appointed as financial advisor regarding capital reduction and capital increase in board resolution No. (31) of 22/05/1443 H on 26/12/2021 and will be announced later when submitting a request for a reduction and increase of the company's capital to the CMA for approval.

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.