AI Summary
Logo of Paper Home Co.
The capital increase will be implemented by capitalizing SAR 40 million from the retained earnings account, with two bonus shares to be granted for every share held, as detailed in the following table:
|
Capital Increase Details |
|
|
Current Capital |
SAR 20 mln |
|
Number of Shares |
2 mln |
|
Percentage Increase |
200% (2-for-1 bonus issue) |
|
Method |
By capitalizing SAR 40 million from the retained earnings account |
|
New Capital |
SAR 60 mln |
|
New Number of Shares |
6 mln |
|
Reasons |
To align with the company's business size and assets, in addition to supporting future growth and expansion |
|
Record Date |
Shareholders at the record date (Shareholders registered with Edaa on the second trading day following the record date) |
Fractional shares, if any, will be compiled in one portfolio for shareholders and will be sold at market price. The proceeds will then be distributed to eligible shareholders, as per their respective ownership, within a period not exceeding 30 days from the date of determining the new shares eligible for each shareholder.
The company clarified that the bonus share issuance is conditional upon obtaining approvals from the relevant regulatory authorities and the approval of the extraordinary general meeting (EGM) for the capital increase and the number of bonus shares to be granted.
In a separate statement to Tadawul, the company also announced that the board recommended amending the company’s Articles of Association to align with the referenced regulations.
Key amendments include the cancellation of the statutory reserve clause in the Articles of Association and a proposal to the general assembly to transfer the entire balance of the statutory reserve, as of the date of the assembly meeting, to the retained earnings account.
Paper Home noted that these recommendations are subject to the approval of the relevant authorities and the EGM.
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