Al-Baha Investment and Development Co. explained to shareholders the measures taken regarding its losses.
The company announced on April 25, 2020 that its accumulated losses reached SAR 69.3 million, or 39.15% of capital, as on Dec. 31, 2020.
Al-Baha's board of directors recommended, on Nov. 10, 2020, a capital increase through a rights issue worth SAR 120 million. The company will use the rights issue proceeds to finance and implement its plans and future projects, as well as expand its various activities in addition to reducing the company's losses.
The firm also appointed Al-Dakhil Financial Group as a financial advisor for rights issue offering.
Work is currently underway to complete its capital increase filing and submit it to the Capital Market Authority (CMA).
The procedures and instructions for listed companies whose accumulated losses reached 35%, or more of their capital, will be implemented, the statement noted.
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