SPIMACO to transfer SAR 184.7 mln from reserves to offset accumulated losses

Logo of Saudi Pharmaceutical Industries & Medical Appliances Corporation (SPIMACO)

Shareholders of Saudi Pharmaceutical Industries and Medical Appliances Corp. (SPIMACO) approved on Nov. 14 the board’s proposal for transferring SAR 34.71 million from consensual reserve and SAR 150 million from the general reserve balance to entirely offset the company’s accumulated losses of SAR 124.36 million.

These losses represent 10.36% of SPIMACO’s capital as of March 31, 2023, the company said in a statement to Tadawul.

In addition, shareholders greenlit the employee stock program, authorizing the board of directors to set the relevant terms, including the allocation price for each share offered to employees, if any.

SPIMACO’s shareholders also approved a maximum buyback of 815,000 shares for the employee stock incentive program. The repurchase will be financed through the company's available cash.

The board was also authorized to complete the buyback within a maximum of 12 months from the extraordinary general meeting’s (EGM) date.

SPIMACO may hold the repurchased shares for a maximum of four years from the EGM approval date until they are allocated to the program. After this period, the company will follow the procedures stipulated in the relevant laws and regulations.