Tabuk Agricultural spends SAR 49 mln of rights issue proceeds

Tabuk Agricultural Development Co. (TADCO) said it spent SAR 49.4 million out of the total proceeds generated from its rights issue by the end of H1 2017.

Costs related to the rights issue came in at SAR 14.9 million, against the SAR 16 million estimated in the prospectus, the company said in a statement to Tadawul on Thursday.

A total of SAR 10.4 million was used for general corporate purposes versus a planned amount of SAR 11.8 million.

The company spent SAR 4.27 million on its crop production project in Sudan compared to SAR 140 million stated in the prospectus. The work was suspended due to legal issues related to land acquisition.

The agricultural firm is considering using this amount towards a new project or to cover the increase in requirements of other projects.

TADCO also spent SAR 3.53 million on its French fries plant, compared to SAR 38.6 million stated in the prospectus. The project is 31 percent complete.

About SAR 14.99 million of proceeds were used for the company’s mixed-fodder project. The company has completed 23 percent of the facility. The project was expected to consume SAR 26.69 million from rights issue proceeds.

In addition, SAR 1.33 million was spent on its olive-pressing plant, which is 21 percent complete.