| Element List | Explanation |
|---|---|
| Introduction | With reference to the announcement by Raydan Food Company published on Tadawul on 02/12/1446 H, corresponding to 29/05/2025 G, regarding the Board of Directors’ recommendation to reduce the capital and subsequently increase it through a rights offering, the Extraordinary General Assembly held on 11/05/1447 H, corresponding to 02/11/2025 G, approved the reduction of the capital from SAR 158,084,670 to SAR 73,136,030, and In light of the increase in total accumulated losses as reflected in the unaudited condensed interim financial statements for the three-month period ended March 31,2026, the Company announces the decision of its Board of Directors dated 03/ 12/1447 H, corresponding to 20/05/2026 G, to amend the previous recommendation and submit a new recommendation to the Extraordinary General Assembly to reduce the Company’s capital as follows: Capital before reduction: 73,136,030 SAR Capital after reduction: 21,940,809 SAR Percentage of capital reduction: 70% Number of shares before reduction: 7,313,603 common shares Number of shares after reduction: 7,313,603 common shares Reason for capital reduction: Restructuring of the company’s capital to write off accumulated losses amounting to SAR 51,195,221. Method of capital reduction: By reducing the par value of the share from ten (10) Saudi riyals per share to three (3) Saudi riyals per share Impact of the capital reduction on the company’s liabilities, operations, or financial, operational, or regulatory performance: There is no material impact of the capital reduction on the Company’s liabilities, operations, or financial, operational, or regulatory performance as a result of the capital reduction. Date of Reduction: The end of the second trading day following the convening of the Extraordinary General Meeting at which the capital reduction is approved. The capital reduction is subject to the approval of the relevant authorities and the Extraordinary General Meeting regarding the capital reduction by reducing the par value of the share from ten (10) Saudi riyals per share to three (3) Saudi riyals per share. At the same meeting held on 03/ 12/1447 H, corresponding to 20/05/2026 G, and following the completion of the capital reduction process, to increase the company’s capital through the issuance of rights shares with a total value of 105,000,000 Saudi riyals. The company’s primary objective in increasing its capital is to implement its expansion plans, support working capital, and strengthen its financial position. Record Date: Eligibility shall be limited to shareholders holding shares on the date of the Extraordinary General Meeting that resolved to increase the capital through the issuance of rights shares, and whose names appear in the issuer’s shareholder register at the Depository Center at the end of the second trading day following the date of the Extraordinary General Meeting. We would also like to note that the capital increase is subject to the approval of the relevant regulatory authorities and the Extraordinary General Meeting. At the same meeting held on 03/ 12/1447 H, corresponding to 20/05/2026 G, to appoint Al Wasatah Al Maliah Company (WASATAH CAPITAL) as financial advisor regarding the capital reduction and capital increase through the offering of rights shares. An announcement will also be made in due course upon submission of the application file for the reduction and increase of the Company’s capital through the offering of rights shares to the Capital Market Authority for its approval. On 12/07/1447 H, corresponding to 01/01/2026 D, the company announced that Al-Bilad Financial Company would no longer continue in its roles as financial advisor, underwriter, and lead manager for the capital increase. |
| Previous Announcement | Raydan Food Company announces the Board of Directors' recommendation to reduce the company's capital, followed by an increase in capital through a rights issue offering |
| Date of Previous Announcement on Saudi Exchange’s Website | 2025-05-29 Corresponding to 1446-12-02 |
| Hyperlink to the Previous Announcement on the Saudi Exchange Website | Click Here |
| Latest Developments Of The Announced Event | The Company announces the Board of Directors’ recommendation dated 03/ 12/1447 H, corresponding to 20/05/2026 G, to the Extraordinary General Assembly regarding a reduction in the Company’s capital, as follows: Capital before reduction: 73,136,030 SAR Capital after reduction: 21,940,809 SAR Percentage of capital reduction: 70% Number of shares before reduction: 7,313,603 common shares Number of shares after reduction: 7,313,603 common shares Reason for capital reduction: Restructuring of the company’s capital to write off accumulated losses amounting to SAR 51,195,221. Method of capital reduction: By reducing the par value of the share from ten (10) Saudi riyals per share to three (3) Saudi riyals per share Impact of the capital reduction on the company’s liabilities, operations, or financial, operational, or regulatory performance: There is no material impact of the capital reduction on the Company’s liabilities, operations, or financial, operational, or regulatory performance as a result of the capital reduction. Date of Reduction: The end of the second trading day following the convening of the Extraordinary General Meeting at which the capital reduction is approved. The capital reduction is subject to the approval of the relevant authorities and the Extraordinary General Meeting regarding the capital reduction by reducing the par value of the share from ten (10) Saudi riyals per share to three (3) Saudi riyals per share. At the same meeting held on 03/ 12/1447 H, corresponding to 20/05/2026 G, and following the completion of the capital reduction process, to increase the company’s capital through the issuance of rights shares with a total value of 105,000,000 Saudi riyals. The company’s primary objective in increasing its capital is to implement its expansion plans, support working capital, and strengthen its financial position. Record Date: Eligibility shall be limited to shareholders holding shares on the date of the Extraordinary General Meeting that resolved to increase the capital through the issuance of rights shares, and whose names appear in the issuer’s shareholder register at the Depository Center at the end of the second trading day following the date of the Extraordinary General Meeting. We would also like to note that the capital increase is subject to the approval of the relevant regulatory authorities and the Extraordinary General Meeting. At the same meeting held on 03/ 12/1447 H, corresponding to 20/05/2026 G, to appoint Al Wasatah Al Maliah Company (WASATAH CAPITAL) as financial advisor regarding the capital reduction and capital increase through the offering of rights shares. An announcement will also be made in due course upon submission of the application file for the reduction and increase of the Company’s capital through the offering of rights shares to the Capital Market Authority for its approval. On 12/07/1447 H, corresponding to 01/01/2026 D, the company announced that Al-Bilad Financial Company would no longer continue in its roles as financial advisor, underwriter, and lead manager for the capital increase. |
| Reasons For The Delay on The Date of The Event Previously Announced | Not Applicable |
| The costs associated with the event, and if they have changed or not with indication of the reasons. | Not Applicable |
| Delay consequences on the Company’s financial results | Not Applicable |
| Additional Information | Approval by the Extraordinary General Meeting of the Company’s capital increase through the issuance of rights shares with a total value of 105,000,000 Saudi riyals, subject to the Extraordinary General Meeting’s approval of the proposed capital reduction. Eligibility shall be limited to shareholders holding shares on the date of the Extraordinary General Meeting that decided on the capital reduction and increase through the offering of rights shares, and whose names appear in the issuer’s shareholder register at the Depository Center at the end of the second trading day following the date of the Extraordinary General Meeting. Any further developments in this regard will be announced at a later date. |
Raydan Food Co. Announces an update on Raydan Food Company announces the Board of Directors' recommendation to reduce the company's capital, followed by an increase in capital through a rights issue offering
AI Summary
- Raydan Food Company’s Board of Directors recommended a 70% capital reduction from SAR 73,136,030 to SAR 21,940,809 to write off accumulated losses totaling SAR 51,195,221.
- The capital reduction will be executed by reducing the par value of shares from SAR 10 to SAR 3 per share, subject to approval from the Extraordinary General Assembly and relevant authorities.
- Following the reduction, the Board recommended a capital increase of SAR 105,000,000 through a rights issue to support expansion plans, working capital, and the company's financial position.
- Al Wasatah Al Maliah Company (Wasatah Capital) has been appointed as the financial advisor for both the capital reduction and the subsequent rights issue.
