Naf Company for Feed for Industry Announces the Signing of an Assignment and Sale Agreement with Foodicom Establishment (a Related Party)

This agreement aligns with the Company’s plan to relocate its headquarters to this site in order to enhance operational efficiency, reduce operating costs, and support future expansion plans.

This value represents approximately 2% of the Company’s total revenues for the year 2024.

The contract value shall be settled within a maximum of 60 business days from the date of completing the assignment procedures with Al-Rass Municipality.

1. Assignment of the Investment Contract (Usufruct Right):

A full and irrevocable assignment in favor of Naf Company for Feed for Industry of the lease contract originally issued under paper contract No. (0460), later replaced by the electronic contract No. (CN-96967), executed with Al-Rass Municipality and expiring on 29/12/1465H.

The assignment pertains to the following industrial plot:

• Location: Al-Qassim Region – Al-Rass City – Industrial Area

• Plan No.: Q/937

• Plot No.: 3/1

• Area: 7,020 sqm

2. Sale of Existing Structures:

Sale and transfer of ownership of the administrative/operational building, the closed warehouse, and all facilities, installations, and improvements currently existing on the aforementioned industrial land, which shall become the property of Naf Company for Feed for Industry.

The execution of the agreement is subject to completing all regulatory procedures and obtaining the required approvals for the assignment from Al-Rass Municipality.

It is noted that the contract value represents the lowest amount of the two received valuation reports regarding the market value of the usufruct right and existing structures, as follows:

• First Valuation Report:

Issued on 15/05/1447H (06/11/2025G) by a valuator accredited and licensed by the Saudi Authority for Accredited Valuers (Taqeem), with a valuation of SAR 3,047,177.

• Second Valuation Report:

Issued on 27/05/1447H (18/11/2025G) by another valuator accredited and licensed by the Saudi Authority for Accredited Valuers (Taqeem), with a valuation of SAR 3,089,855.

The Chairman of the Board, Mr. Faiz Athaar Talheb Al-Harbi, abstained from voting due to a direct interest in the transaction, in accordance with the Companies Law and its Executive Regulations.

The Board confirms that this agreement was executed without any preferential terms or advantages, and it will be presented to the General Assembly of Shareholders for voting at its next meeting.