Thimar board recommends 90% capital cut to SAR 10 mln, amends capital hike proposal

Thimar board recommends 90% capital cut to SAR 10 mln, amends capital hike recommendation

A branch of Thimar

Thimar Development Holding Co.’s board of directors recommended on March 28, to cut capital to SAR 10 million, prior to the proposed capital increase, through writing off nine million shares, the retailer said in a statement to Tadawul.

Capital Reduction Details
Current Capital	SAR 100 mln
Number of Shares	100 mln
New Capital	SAR 10 mln
Number of Shares	1 mln
Percentage of Reduction	90% (1 share for every 1.11 shares)
Reason	Restructuring capital to offset accumulated losses.
Method	Writing off 9 mln shares

In addition, the board amended its recommendation to increase capital through a SAR 100 million rights issue, instead of SAR 200 million.

Capital Increase Details
Pre-Increase Capital	SAR 10 mln
Number of Shares	1 mln
Post-Increase Capital	SAR 110 mln
Number of Shares	11 mln
Percentage of Increase	1000% (10 shares for each share)
Method	10 mln share issue
Reason	Supporting the company's activities and paying creditors
Record Date	Shareholders of record on the date of the EGM that decides to increase capital and those registered with Edaa on the second trading following the date of the EGM

The capital hike is subject to the competent authorities’ and the shareholders’ approval during the next extraordinary general meeting (EGM).

Wasatah Capital was appointed as a financial advisor and underwriter for the capital cut, as well as the capital increase, the statement added.

Updates regarding the submission of the capital increase request to the Capital Market Authority (CMA) will be disclosed.

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