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Element List	Explanation
Introduction	Jazan Development and Investment Company announces that one of its investee companies, Al-Reef Sugar Refinery Company, has signed a binding Memorandum of Understanding on the part of Al-Reef’s shareholders (the sellers), while remaining non-binding on the part of Ethraa Holding Company (the buyer). The memorandum includes the sale of 100% of the existing shareholders’ equity in Al-Reef Sugar Refinery Company. In return, Ethraa Holding Company commits to providing the necessary financial guarantees to all creditors, primarily the Saudi industrial Development Fund (SIDF), to cover all existing loans and obligations of Al-Reef Sugar Refinery Company and guarantees provided by shareholders. Jazan Development and Investment Company owns 15% of the capital of Al-Reef Sugar Refinery Company, which amounts to SAR 300,000,000, divided into 30,000,000 shares with a nominal value of SAR 10 per share. It is worth noting that the full value of this investment was written off as per the latest audited annual financial statements dated 31-12-2024.
Memorandum Signing Date	2025-06-21 Corresponding to 1446-12-25
Counterparty	1) Al-Reef Sugar Refinery Company (Seller) 2) Ethraa Holding Company (Buyer)
Memorandum Subject	Based on this memorandum, the shareholders of Al-Reef Sugar Refinery Company intend to sell all their shares to Ethraa Holding Company. In return, Ethraa Holding Company commits to providing financial guarantees covering all of Al-Reef’s debts and obligations, particularly the loans owed to the Saudi industrial Development Fund (SIDF). The memorandum is binding on the shareholders of Al-Reef but non-binding on Ethraa Holding Company, and its execution is subject to the results of due diligence and obtaining the necessary regulatory approvals. Ethraa Holding Company will conduct a comprehensive due diligence review covering the financial, legal, operational, and technical aspects of Al-Reef. Al-Reef is committed to providing all required documents and information during the memorandum’s effective period.
Memorandum Duration	60 days starting from the date of signing this memorandum, and may be extended by written agreement between the two parties
Related Parties	None
Financial Impact	The expected financial impact on JAZADCO is the reversal of the Saudi industrial Development Fund (SIDF) guarantee provision in the amount of SAR 100,800,000, in the event the transaction is completed.
Additional Information	The signing of this memorandum comes as part of JAZADCO’s efforts to reduce the financial impact arising from the obligations related to Al-Reef. Any relevant developments will be announced as they become available.

Jazan Development and Investment Company Announces that the shareholders of one of the investee companies (Al-Reef Sugar Refinery Company) signed a memorandum of understanding to sell the entire shareholders shares to Ethraa Holding Company