SIECO announces measures as accumulated losses reach 57.72% of capital

Saudi Industrial Exports Co.

Saudi Industrial Exports Co. (SIECO) announced the measures to be taken and the time limit after its accumulated losses reached 57.72% of the capital.

The company said in a bourse filing that it announced on April 29, that the accumulated losses reached 50% or more of the capital, and informed the board of directors on April 28, 2021.

The company further stated that June 28 is the last day for the board of directors to call for the extraordinary general assembly (EGM), and Oct. 28, 2021, is the last day for EGM to be held to address the accumulated losses as stated in Article 150 of the Companies Law.

In case of the non-conveying of the EGM within 180 days from the date of it came to the knowledge of board of directors regarding the accumulated losses, expiring on Dec. 31, 2021, or in case the EGM did not resolve the subject matter, the company will be lapsed by the force of the law.

The accumulated losses in Q1 2021 amounted to SAR 40.35 million, or 62.27% of the company's capital, based on the announcement on June 29, 2021.

The company already filed its capital raise application by Dec. 31, 2020, to the Capital Market Authority (CMA), and work is ongoing with the appointed financial advisor to complete the underwriting process after obtaining all necessary CMA approvals.