Takween Advanced Industries Co. — Capital/Financing Update 2023

Mar 13, 2023

Takween Advanced Industries Company Announces Its Board of Directors Recommendation to Reduce the Company's Capital and A Subsequent Capital Increase Through Rights Issue

1201 · 13/03/2023 16:00:13 · Announcement #72364 · View on Saudi Exchange

Takween Advanced Industries Company Announces Its Board of Directors Recommendation to Reduce the Company's Capital and A Subsequent Capital Increase Through Rights Issue

Element List	Explanation
Introduction	Takween Advanced Industries Company announces that its Board of Directors has decided in its meeting held on Monday, 21-08-1444H Corresponding to 13-03-2023G, to recommend to the Extraordinary General Assembly Meeting to reduce The Company's Capital and Subsequently increase the Capital according to the following details:
Date of Board Meeting	2023-03-13 Corresponding to 1444-08-21
Capital before decrease	950,000,000 Saudi Riyal
Capital after decrease	490,403,000 Saudi Riyal
Percentage of Capital decrease	48.38 %
Number of Shares before Decrease	95000000
Number of Shares after Decrease	49040300
Reasons for the Capital Decrease	Restructuring the company's capital to write off the accumulated losses.
Method of Capital Decrease	Cancelling 45,959,700 shares of the company’s shares, (1) share will be reduced for every (2.067) shares.
Impact of the Capital Decrease on the Company's Obligations, Operations or Operational, Financial or Organizational Performance of the Company	There is no impact of reducing the company's capital on its financial obligations.
Date of reduction	The End of the Second Trading Day after the Extra Ordinary General Assembly Meeting in which Decrease was Resolved
Approvals	The recommendation to reduce the company's capital is subject to the approval of the related official authorities and the approval of the extraordinary general assembly
Appointment of a Financial Advisor and the Submission of the Application for Capital Decrease to CMA	Appointing Wasatah Capital as the financial advisor regarding the capital reduction and capital increase and the Underwriter, Also, an announcement will be made upon submitting the company’s capital reduction application file to Capital Market Authority for approval.
Additional Information	In the same meeting held on 21-08-1444H Corresponding to 13-03-2023G, The Board of Directors has recommended to the Extraordinary General Assembly, and after finalizing the process of capital reduction, to increase the capital by offering Rights Issue with value of SAR 300 million, so that the capital after the increase becomes SAR 790,403,000, the details of which are as follows:

Capital before the increase: SAR 490,403,000.

Capital after the increase: SAR 790,403,000.

Capital increase percentage: 61.17%

Number of shares before the increase: 49,040,300 shares

Number of shares after the increase: 79,040,300 shares

By increasing its capital, the Company aims essentially to financing working capital and finance purchasing new machinery to increase sales as per the company strategy.

The approval of the extraordinary general assembly on the process of increasing the company's capital by offering Rights Issue is conditional on the Company’s Extraordinary General Assembly approval of the proposed capital reduction.

The eligibility of subscription will be for the Shareholders holding the shares on the date of the Extraordinary General Assembly meeting in which capital increase through the issuance of rights issue was resolved and whose names 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.

We would also like to point out that process of capital increase is subject to the approval of the related official authorities and the Extraordinary General Assembly.

As mentioned above, Wasatah Capital will be the financial advisor for the process of the capital increase and the Underwriter.

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.