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Saudi Pharmaceutical Industries and Medical Appliances Co. (SPIMACO) announced the voluntary liquidation of its affiliate, Watan Pharma Co. starting Sept. 16, based on shareholders’ resolution on the same date.
Watan Pharma, a limited liability company, manufactures cosmetics and pharmaceuticals, SPIMACO said in a bourse statement, adding that Watan Pharma has not yet started its commercial operations.
SPIMACO said it will produce some of Watan Pharma’s products in its Qassim-based plant, noting that no significant costs are incurred.
Moreover, the paperwork required for Watan Pharma’s capital hike from SAR 100 million to SAR 150 million has not been finalized with the Ministry of Commerce due to incomplete regulatory documents related to the entry of a third partner.
The statement also added that there is no financial impact from liquidating Watan Pharma on SPIMACO, as the company has not started commercial operations and does not own capital projects.
Meanwhile, the subsidiary’s financials for the previous years were accounted within SPIMACO’s consolidated financial statements.
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