Jabal Omar issues circular on capital increase via debt conversion

Logo of Jabal Omar Development Co. 

Jabal Omar Development Co. issued the shareholders' circular for its capital increase in accordance with the requirements of the listing regulations regarding a capital increase, through debt conversion.

According to a statement to Tadawul, the company said that the circular includes details of the transaction, its terms and conditions, and all related matters, including related parties, transaction completion procedures, and associated risks.

The company's board members emphasized the importance of carefully reading and studying all the information contained in the circular before deciding on voting on the transaction.

In case of any doubt, the board recommended obtaining independent advice from any financial advisor licensed by the Capital Market Authority (CMA) and relying on their review to ensure the suitability of the transaction and the information contained in the circular.

Any material developments regarding the transaction will be announced in due course, the statement noted.

The CMA recently approved Jabal Omar’s request to increase its capital through converting debts worth SAR 547.5 million, according to data available with Argaam.

In December 2023, the developer's board of directors recommended increasing capital through converting SAR 547.5 million worth of debt into new shares for creditors.

Jabal Omar signed debt settlement agreements with Central District Cooling Co. and Makkah Construction and Development Co. to convert debt into new shares through a proposed capital increase.

The company invited its shareholders to attend an extraordinary general meeting (EGM) on Nov. 4.