| Element List | Explanation |
|---|---|
| Introduction | Following up on what was stated in the issuance prospectus of the rights shares of Wafrah Industry and Development Company, which was published on 22/10/1443 corresponding to 23/05/2022 on the Tadawul website, as well as the company’s announcement of the results of the extraordinary general assembly meeting which included approval of the capital increase on 15/11/1443 corresponding to 14/06/2022, amounting to 154,340,700 Saudi Riyals, and in accordance with paragraph (w) of Article seventy-two of the Rules for Offering Securities and Continuing Obligations, which stipulates the company’s obligation to disclose when there is a difference of (5%) or more between the actual use of the proceeds and what was disclosed in the issuance prospectus, the company announces that there are differences in the uses of some of the proceeds as follows. |
| 5% or More Deviation in the Actual Use of the Proceeds Compared to the Disclosure Made in the Prospectus and Reasons and Justification for the Deviation | the existence of differences in certain aspects of the use of proceeds from the offering at the factory level compared to what was stated in the Prospectus, as a result of the reallocation of amounts among the projects related to the Company’s factories in line with operational needs and the current expansion plan, and in a manner that achieves the optimal utilization of proceeds from the offering without affecting the total amounts allocated to the capital increase projects. This is as follows: 1- The amount allocated to the Pastries Factory increased from 18,000,000 Saudi Riyals to 46,565,394 Saudi Riyals, representing an increase of 159%, as a result of the expansion through establishing a new production line with higher capacity instead of developing the existing line, following an evaluation of the factory’s operational and technical status. 2- The amount allocated to the Vegetable Products Factory (Vegetables) decreased from 40,000,000 Saudi Riyals to 21,960,441 Saudi Riyals, representing a decrease of 45%, as a result of re-evaluating the operational feasibility of certain production lines and the change in expansion priorities at the factory. 3- The amount allocated to the Breakfast Cereals Factory decreased from 18,000,000 Saudi Riyals to 7,689,443 Saudi Riyals, representing a decrease of 56%, as a result of postponing certain expansion phases until operational indicators supporting the implementation of the project emerge. 4- At the overall level, the change in the use of proceeds from the offering resulted in a slight increase amounting to 676,993 Saudi Riyals, representing 0.56% of the total amounts allocated to the projects. |
| Additional Information | The Board of Directors of Wafrah Industry and Development Company recommends that the General Assembly approve the proposed amendments to the uses of the offering proceeds imposed by changes in manufacturing priorities in recent times. The company will announce any material developments related to this matter in due course. |
| Attached Documents | Attached Documents |
