Osool & Bakheet says subsidiary approves capital reduction, increase

Osool & Bakheet holds 59.66% and 54.98% of the paid-up and issued capital, respectively, in Creative Future.

Shareholders approved reducing Creative Future's issued capital from SAR 27.13 million to SAR 25 million by canceling 212,500 issued but unpaid shares, Osool & Bakheet said in a statement to Tadawul.

This brings the issued capital in line with the paid-up capital of SAR 25 million.

In addition, shareholders approved increasing the company's capital by 32% from SAR 25 million to SAR 33 million, through the issuance of 800,000 new ordinary shares with a nominal value of SAR 10 per share.

The capital increase will be covered as follows: SAR 5.32 million (532,000 shares) through the capitalization of a part of Creative Future's debt owed to Osool & Bakheet, and SAR 2.68 million (268,000 shares) through subscriptions by the other shareholders in the investee company.

Osool & Bakheet added that it will undertake any unsubscribed shares, ensuring the capital increase is completed in full.

The capital increase aims to strengthen Creative Future’s financial position, support its operational requirements and plans, improve business efficiency, enhance sustainability, and position it for growth in the coming period.

Osool & Bakheet noted that it is currently unable to determine the financial impact of the capital increase, as this depends on completing the relevant regulatory procedures and obtaining the necessary approvals.