Tihama Advertising & Public Relations Co. (Tihama) will face termination by August 14, 2020, under the Saudi Companies Law, if it fails to hold an extraordinary general meeting (EGM) within 45 days from the date its board of directors was informed of losses, or shareholders fail to pass a resolution, the company said in a bourse filing on Tuesday.
The board of directors, being notified of the company’s accumulated losses on June 30, 2020, can invite shareholders to attend the EGM no later than August 14.
Shareholders will be able to discuss the issue of accumulated losses during the EGM, slated for July 15, the statement said, stressing the need for shareholders to attend the meeting today, July 7, to discuss the prospective capital hike with the financial advisor.
The company said that the accumulated losses will automatically be decreased to less than 50% of the capital if the shareholders approve the capital hike during the EGM, which will allow the continuation of expansion plans.
According to data compiled by Argaam, Tihama reported accumulated losses of SAR 37.6 million for the fiscal period ending March 31, 2020, representing 50.1% of the company’s capital.
Shareholders will vote on a capital hike to SAR 175 million from SAR 75 million through a SAR 100 million rights issue at the EGM on July 15.
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