Takween Advanced Industries Announces the Board of Directors’ Recommendation to Reduce the Company’s Share Capital and Subsequently Increase the Share Capital through a Rights Issue Offering

Element List	Explanation
Introduction	Takween Advanced Industries announces that its Board of Directors, at its meeting held on 23 June 2026, resolved to recommend to the Extraordinary General Assembly of the Company's shareholders a reduction of the Company's share capital, followed by an increase of the share capital through a rights issue offering, in accordance with the details set out below:
Date of Board Meeting	2026-06-23 Corresponding to 1448-01-08
Capital before decrease	SAR 764,646,060
Capital after decrease	SAR 245,268,060
Percentage of Capital decrease	67.92 %
Number of Shares before Decrease	76464606
Number of Shares after Decrease	24526806
Reasons for the Capital Decrease	The capital reduction aims to restructure the Company's capital by offsetting accumulated losses amounting to SAR 519,378,000 and to optimize the capital structure in line with the Company's financial position.
Method of Capital Decrease	A total of 51,937,800 shares of the Company will be cancelled, representing a capital reduction of 67.92%. Accordingly, 0.67924 shares will be cancelled for every share held by shareholders.
Impact of the Capital Decrease on the Company's Obligations, Operations or Operational, Financial or Organizational Performance of the Company	No material adverse impact is expected on the Company's obligations, operations, financial performance, operational performance, or regulatory status as a result of the proposed capital reduction.
Date of reduction	The End of the Second Trading Day after the Extra Ordinary General Assembly Meeting in which Decrease was Resolved
Approvals	The Board of Directors’ recommendation is subject to obtaining the approvals of the Capital Market Authority, the relevant regulatory authorities, and the Extraordinary General Assembly.
Appointment of a Financial Advisor and the Submission of the Application for Capital Decrease to CMA	It should be noted that, as of the date of this announcement, the Company has not yet appointed a financial advisor to manage the capital reduction process, nor has it submitted the capital reduction application file to the Capital Market Authority. The Company will announce any material developments related to this matter as and when they occur, in accordance with the relevant laws, regulations, and instructions.
Additional Information	The Board of Directors, at its meeting held on 23 June 2026, also recommended to the Extraordinary General Assembly, following the completion of the capital reduction process, to increase the Company’s share capital through a rights issue offering with a total value of SAR 400,000,000. The capital increase aims to strengthen the Company’s financial position, support liquidity and working capital requirements, settle part of its financial obligations towards banks, and enable the Company to implement its future operational and strategic plans. Eligibility Date: Eligibility to subscribe to the rights issue shall be for shareholders owning shares on the date of the Extraordinary General Assembly meeting approving the capital increase through a rights issue offering and who are registered in the Company’s shareholders register maintained by the Securities Depository Center Company (Edaa) at the end of the second trading day following the date of the Extraordinary General Assembly meeting. The Company would also like to note that the capital increase is subject to obtaining the approvals of the relevant regulatory authorities and the Extraordinary General Assembly. The Company will announce any material developments related to this matter in due course in accordance with the applicable regulatory requirements. The Company will also announce, in due course, the submission of the application file for the capital increase through a rights issue offering to the Capital Market Authority for its approval.