Element List	Explanation
Introduction	KnowledgeNet Company announces the Board of Directors’ resolution dated 08/12/1446H corresponding to 2025/06/04G to recommend to the Extraordinary General Assembly an increase in the company’s capital by capitalizing a portion of the retained earnings, through granting one bonus share for every two existing shares.
Date of Board Meeting	2025-06-04 Corresponding to 1446-12-08
Capital before increase	35,000,000
Capital after increase	52,500,000
Percentage of Capital increase	50 %
Number of shares before Capital increase	3500000
Number of shares after Capital increase	5250000
Reasons for the increase	The company aims to increase its capital to support its strategic growth plan, meet future expansion needs and aspirations, and reinforce its financial solvency and strong financial position.
Number of Shares Granted per Exiting Share	Granting one share for every 2 shares held.
Nature and Value of Reserves Used in the Capitalization	An amount of only SAR 17,500,000 will be capitalized from the retained earnings.
Eligibility Date	Eligible Shareholders are Those Holding Shares in the Eligibility Date as per the Shareholders Registry at the Deposit Center at The End of The Second Working Day after Eligibility Date
Fractional Shares	In the event of fractional shares, they will be collected into a single portfolio for all shareholders and sold at the market price. The proceeds will then be distributed to the eligible shareholders, each according to their share, within a period not exceeding 30 days from the date of determining the new shares allocated to each shareholder.
Approvals	The bonus share issuance is conditional upon obtaining the approval of the official authorities and the Extraordinary General Assembly on the capital increase and the number of granted shares.