Arabica Star OGM refuses to discharge board of liability, redefine uses of IPO proceeds

Logo of Arabica Star Co.

Shareholders of Arabica Star Co. declined to approve discharging board members from liability for 2024, during the ordinary general meeting (OGM) held on June 17, according to a statement to Tadawul.

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They also disapproved delegating the board the authorization powers of the general assembly, as stipulated in the Companies Law, for a period of one year from the date of approval of the general assembly or until the end of the delegated board term, whichever is earlier.

Meanwhile, shareholders rejected a board recommendation to redefine the uses of the offering proceeds amounting to SAR 16 million, as stated in the offering prospectus published on Dec. 5, 2024, to be used entirely for expanding the company's business, in accordance with the statement.

Furthermore, shareholders refused to approve the transactions and contracts concluded between the company and Dana Cafe Trading Co., in which Chairman Hamoud Al-Hamoud along with Managing Director and CEO Mohammed Al-Hamoud have an indirect interest, given their kinship with the owner of Dana Cafe.

These transactions are (commercial franchise sales) for a period of five years with a value of SAR 3.32 million in 2024, while the amount paid during 2024 was SAR 4.51 million.

The balance at the end of the period amounted to SAR 108,989. These transactions are conducted in the normal course of business and in accordance with prevailing commercial terms and conditions, without any preferential conditions.

The company clarified that the votes of both the Chairman and the CEO were cancelled from the item due to an indirect interest in Item No. (8).

Other agenda items were approved, including authorizing the board to distribute interim cash dividends for 2025 on a semi-annual or quarterly basis, the statement added.