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![video link button](/Content/en/images/attachement-icon.jpg)
Ali Al-Jaafari Chairman of Ash-Sharqiyah Development Co.
Ash-Sharqiyah Development Co. did not generate revenues in the last five years as projects have been stalled since 2017, which led to liquidity shortage and financial distress, Chairman Ali Al-Jaafari told Argaam in an interview.
A successful capital hike process will enable the company to invest in several fields, including food security and agricultural projects.
The capital increase is crucial for the company to start operations, he said.
Ash-Sharqiyah plans to use the rights issue proceeds in various projects on its owned 72 million square-meter land, Al-Jaafari added.
The company’s extraordinary general meeting (EGM) was scheduled on April 11 to discuss the board’s proposal for raising capital through a SAR 225 million rights issue, but the meeting was postponed, Argaam reported.
Related News
Ash-Sharqiyah postpones EGM due to lack of quorum |
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