Etihad Atheeb to hold EGM no later than March 1

Etihad Atheeb Telecommunication Co. (GO) on Sunday said that the deadline to convene the extraordinary general assembly (EGM) will be March 1, 2020, in order to address the accumulated losses as per Article 150 of the Companies Law.

On Jan. 16, the board of directors was informed that accumulated losses reached 51.63% of capital. The board can invite shareholders to attend the EGM until Jan. 31.

The EGM must be held within 45 days from the date its board of directors were informed of losses. The company will face termination in case it fails to convene EGM or arrive at a decision at the EGM.

Earlier today, the telecom services provider’s accumulated losses reached SAR 180.98 million as of Jan.16, 2020, representing 51.63% of capital amounting to SAR 350.53 million. The losses were attributed to a drop in operating revenues and other income, in addition to the increase in depreciation expenses and financial fees.

The company is subject to Capital Market Authority (CMA) regulations regarding companies with accumulated losses reaching 20% of capital or more.

The Saudi Stock Exchange (Tadawul) has suspended Etihad Atheeb from trading since July 1, 2018.