TADCO shareholders to vote on capital cut on March 18

Shareholders of Tabuk Agricultural Development Co. (TADCO) will vote in the extraordinary general assembly (EGM), which is set to convene for the third time on March 18, on reducing capital by 46.27% from SAR 450 million to SAR 241.76 million, the company said in a statement to Tadawul on Sunday.

The reduction aims to offset accumulative losses worth SAR 208.23 million.

The company plans to cancel 20.82 million shares (0.46274 share for every one share), bringing the total number of shares following the reduction to 24.17 million shares from 45 million.

The EGM will also vote on amending clauses 7, 20, 29, 40, and 42 of the articles of association.

Shareholders will mandate the board of directors to use any amount from the 2015 capital hike in other investment projects or utilize it in the company’s operating activities, the statement added.

Earlier in December, TADCO filed a request with the Capital Market Authority (CMA) to reduce its capital by 46.27% to offset accumulated loses, according to data compiled by Argaam.

The EGM slated for Feb. 19 was not held due to the lack of quorum, Argaam reported earlier.