Tihama files claim before CRSD against MEFIC Capital

The lawsuit comes to demand the return of the amounts transferred to the fund due to the breach of the terms of the agreement by the fund manager.

Tihama Advertising and Public Relations Co. filed a legal lawsuit at the Committee for Resolution of Securities Disputes (CRSD) against Middle East Financial Investment Co. (MEFIC Capital), in its capacity as the manager of the Saudi Film Fund.

In a statement to Tadawul, the company said that the case claims the return of the amounts transferred to the fund. The claim comes due to the fund manager’s breach of the terms of the agreement and failure to meet the condition of collecting the minimum amount during the offering period, in accordance with Clause (8-i) of the agreement.

The amount in question is currently recorded as a debit balance in Tihama’s financial statements until a ruling in the case is issued, the statement added.

If a ruling is issued in the company's favor, this amount will be reclassified from debit balances to cash; if the ruling contrary to this, it will be reclassified to investments.

There is no financial impact on the company's current financial statements as of the date of this announcement, the Saudi-listed firm noted.

The company will disclose any material developments related to the lawsuit in due course.

According to data compiled by Argaam, Tihama signed, in May 2024, an agreement with Saudi Film Fund, in partnership with the Cultural Development Fund, to invest SAR 37.5 million in exchange for a 10% stake in the fund's capital.