The General Assembly of “Tabuk Agricultural” rejects the reduction of capital by 52.94%

Tabuk Agricultural Development Company announced "Tabuk Agricultural" The results of the extraordinary general assembly meeting, which included the item requesting a reduction in the company’s capital (the third meeting), which was held yesterday, Wednesday.

The company said in a statement on its website "Saudi Arabia trading"The results of the vote on the assembly’s agenda included:

1) Disagreeing with the Board of Directors’ recommendation to reduce the company’s capital according to the following:

• Capital before reduction: ‏391,767,000 riyals.

• Capital after reduction: ‏ 184,356,390 riyals.

• Reduction percentage in capital: 52.94%.

• Number of shares before the reduction: 39,176,700 shares.

• Number of shares after reduction: ‏ 18,435,639 shares.

• Reason for reducing capital: Restructuring the company’s capital to extinguish accumulated losses.‏

• Capital reduction method: Cancellation of 20,741,061 shares of the company’s shares, (1) share will be reduced for every (1.89) share owned.

• Reduction date: If the clause is approved, the reduction decision will be effective on the company’s shareholders who own shares on the day of the extraordinary general assembly and who are registered in the company’s shareholder registry with the Securities Depository Center Company (Depository Center) at the end of the second trading day following the date of the extraordinary general assembly in which the capital reduction was decided.

• Impact of reducing capital on the company’s obligations: There is no impact of reducing the company’s capital on its financial obligations, operations, or the company’s financial, operational, or organizational performance.

• Amending Article (7) of the company’s bylaws relating to capital.

• Amending Article (8) of the company’s bylaws related to capital subscription.

2) Approving the amendment of the company’s bylaws to be consistent with the new companies’ bylaws and rearranging the articles of the company’s bylaws and their numbering, to be consistent with the proposed amendments.

3) Approving the cancellation of the decision of the Ordinary General Assembly held on 09/25/2024 AD regarding approving the Board of Directors’ recommendation to exit from investment in the Agricultural Fodder Sources Company by selling all the shares owned by the Tabuk Agricultural Development Company in the Masader Company. Agricultural Fodder Limited, which is estimated at 60% of the company’s total shares, is transferred to the partner, Ahmed Hussein Al-Omari, in exchange for an amount of 7 million riyals, including the factory affiliated with the Ahmed Hussein Al-Omari Foundation, in which the company also owns 60%, as the exit to the Tabuk company achieves stopping continuous losses, which amounted to an average of 4 million riyals annually. The company achieved cash flow of 7 million riyals from the exit process, as well as achieving net profits from the exit in the amount of 9.6 million riyals, which will be recorded directly in the profit or loss statement. Authorizing the current Board of Directors to take what it deems appropriate in the interest of the company.

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