CMA approves Lana’s 50% capital hike via bonus issue

Logo of Lana Medical Co.

The Capital Market Authority (CMA) approved today, Jan. 15, Lana Medical Co.’s request for a capital increase of 50% from SAR 36 million to SAR 54 million, through a one-for-two bonus issue, according to a statement.

Subscription eligibility will be limited to shareholders registered with the Security Depository Center (Edaa) as of the closing of the second trading day after the due date, which will be determined later by the company's board.

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The capital top-up will be financed by transferring SAR 17.47 million from retained earnings and SAR 526,290 from the statutory reserve. Accordingly, the share capital will increase from SAR 3.6 million to SAR 5.4 million, the statement added.

The deciding extraordinary general meeting (EGM) shall be held within six months of this approval date. However, the company shall satisfy all regulatory requirements and applicable laws, the CMA explained.

Lana’s board of directors recommended in July 2024 a 50% capital hike through a one-for-two bonus share distribution, to support funding for current, future, and expansion projects, according to data available to Argaam.