AYYAN shareholders to vote on amending use of rights offering proceeds on Dec. 5

AYYAN Investment Co.’s shareholders will vote on the board’s recommendation with regard to amending the uses of the proceeds from the rights offering, amounting to SAR 200 million, which were stated in the prospectus issued on July 10, 2024, during an ordinary general assembly scheduled to be held on Dec. 5.

According to the company, there was a difference in the use of the proceeds of the right shares issue from what was disclosed in the right issue prospectus. The reason for this is due to the following: Due to the maturity of some operational and financial obligations before receiving the proceeds of the right issue, and to ensure the progress of work and cover the operational needs of Al Salam Medical Services Company, financing (interest free loan) was obtained from related parties (Al Othman Holding Company), where the total amount obtained amounted to SAR 226.1 million. After receiving the proceeds of the offering, it was used to pay off an existing balance due to Al Othman Holding Company in the amount of SAR 150 million,

The existing balance that was paid is due to Al Othman Holding Company in exchange for the financing granted referred to above, which was used for the same uses stipulated in the right issue prospectus, as follows:

According to data available to Argaam, AYYAN published, June 11, the prospectus for its capital increase through a SAR 200 million rights offering. The rights issue is aimed at enabling the company to implement its operational plans and supporting its working capital. The rights issue was 84.8% subscribed.

The company signed, on Aug. 19, a binding acquisition and subscription agreement Dallah Healthcare Co. to purchase its stakes in Al-Ahsa Medical Services Co. and Al-Salam Medical Services Co. The agreement includes acquiring 97.4% of the capital of Al-Ahsa (which owns Al-Ahsa Hospital in Al-Ahsa) and 100% of the capital of Al-Salam (which owns Al-Salam Hospital in Al-Khobar).