TADCO says accumulated loss hits 77.41% of capital, plans capital cut

TADCO’s accumulated losses reach SAR 303.28 million

Tabuk Agricultural Development Co.’s (TADCO) accumulated losses reached SAR 303.28 million, accounting for 77.41% of capital, as per financial statements for 2025, the company said in a statement to Tadawul.

The losses are mainly attributed to the recognition of impairment in biological assets, increased production and logistics costs, in addition to the provisioning for receivables.

TADCO plans to implement Article 132 of the Companies Law as the board will invite shareholders to hold an extraordinary general meeting (EGM).

The EGM must convene no later than Sep. 27, 2026, to discuss whether to continue operations while taking the necessary measures to address the losses or to dissolve the company.

The relevant procedures applicable to listed companies with accumulated losses reaching 20% or more of capital will be implemented.

The board recommended initiating the required procedures and complying with applicable regulations related to companies whose accumulated losses exceed 20% of capital, particularly in terms of disclosure and protecting shareholders’ rights and interests.

In a separate Tadawul statement, the board recommended a 77.41% capital cut from SAR 391.77 million to SAR 88.48 million to offset accumulated losses, as detailed below:

The capital cut will have no impact on TADCO financial obligations, operations, or its financial, operational, or regulatory performance. The capital reduction remains subject to the approval of the relevant authorities and the EGM.

TADCO will announce further updates upon appointing a financial advisor, as well as filing for the Capital Market Authority (CMA) approval.

According to data available on Argaam, shareholders rejected on Dec 10, 2025, a capital reduction of 52.94% from SAR 391.77 million to SAR 184.36 million to offset accumulated losses.