Red Sea OKs transfer of issue premium to cut accumulated losses

Red Sea International shareholders approved transferring SAR 295.7 million in share offering premium to slash accumulated losses

The extraordinary general meeting (EGM) of Red Sea International Co. approved on Jan. 4 the board’s recommendation to transfer the full balance of the share premium, amounting to SAR 295.7 million, to accumulated losses.

In a statement to Tadawul, the company said the move is aimed at offsetting part of accumulated losses totaling SAR 297.2 million, which represent 61.56% of the company’s capital of SAR 482.7 million. As a result, the accumulated losses will be reduced to 0.30% of capital.

Shareholders also approved an amendment to Article 4 of the company's bylaws related to its objectives, allowing the addition of land transportation of goods to its activities.