AYYAN Investment Co. Announces Board's Recommendation to Decrease the Company's Capital

AYYAN Investment Co.'s Board of Directors recommended a 24.72% capital reduction, decreasing the capital from SAR 1,006,363,280 to SAR 757,595,980.
The reduction involves canceling 19,876,730 shares to offset accumulated losses and an additional 5,000,000 shares deemed in excess of the company’s needs.
Shareholders will receive a cash return for the 5,000,000 shares canceled due to capital surplus, while the reduction for losses will not have a material impact on company obligations or performance.
The proposal, supported by financial advisor Alinma Capital, is subject to approvals from the Capital Market Authority (CMA), relevant regulatory bodies, and the Extraordinary General Assembly.

Element List	Explanation
Introduction	AYYAN Investment Co. announces that the Board of Directors has recommended to the Extraordinary General Assembly (EGM) the reduction of the Company's capital.
Date of Board Meeting	2026-07-27 Corresponding to 1448-02-13
Capital before decrease	SAR 1,006,363,280
Capital after decrease	SAR 757,595,980
Percentage of Capital decrease	24.72 %
Number of Shares before Decrease	100636328
Number of Shares after Decrease	75759598
Reasons for the Capital Decrease	Restructuring the company's capital as follows: • Offset the accumulated losses. • Execute an additional reduction as it exceeds the company's needs.
Method of Capital Decrease	Capital reduction is as follows: • A reduction of SAR 198,767,300 by canceling 19,876,730 shares to offset the accumulated losses, representing the cancellation of 0.1975104854779680 share for each share held. • A reduction of SAR 50,000,000 by canceling 5,000,000 shares as it exceeds the company's needs, representing the cancellation of 0.04968384776519270 share for each share held. This will be implemented by returning the funds to the company's shareholders.
Impact of the Capital Decrease on the Company's Obligations, Operations or Operational, Financial or Organizational Performance of the Company	The capital reduction will not have any material impact on the Company's obligations, operations, financial performance, operational performance, or regulatory status..
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 remains 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	Alinma Capital Company has been appointed as the financial advisor for the capital reduction process. An announcement will also be made upon submitting the company’s capital reduction application file to the Capital Market Authority (CMA) for approval, and regarding any other developments in accordance with the CMA Rules."