Gulf Union Al Ahlia Cooperative Insurance Co. announces the reduction in its Accumulated Losses to reach 29.63 % of its Capital

2022-06-23 09:34:14

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Introduction Gulf Union Al Ahlia Cooperative Insurance Co. announces the reduction in its Accumulated Losses to reach 29.63 % of the Capital, after completing the procedures of increasing the company’s capital from 229,474,640 riyals to 458,949,280 riyals, with increase of 100% through offering rights issue with 22,947,464 ordinary shares with a value of 229,474,640 SR. Attached is the auditor's report issued on 22/06/2022, which shows the reduction in the company's accumulated losses from 57.98% to reach 29.63% of the capital after increasing the company's capital as at 08/06/2022.
Date of accumulated losses decrease 2022-06-08 Corresponding to 1443-11-09
Amount of the Accumulated Losses 135,963,913 SR
Measures Taken by the Company to Decrease Accumulated Losses The reason for the decrease in the company’s accumulated losses is due to the increase in the company’s capital from 229,474,640 riyals to 458,949,280 riyals, i.e. an increase of 100% through offering rights issue of 22,947,464 ordinary shares with a value of 229,474,640 Saudi riyals. Where the company’s board of directors issued on 19/10/2021 its recommendation to increase the company’s capital by offering rights issue in order to support the company’s future plans, enhance the solvency margin and increase investment income. The approval of the extraordinary general assembly of the company was obtained to increase the company’s capital, which It was held on 20/04/2022
Auditor's Report showing the Financial Position of the Company after the Decrease of the Accumulated Losses
Additional Information - The Procedures and Instructions Related to Listed Companies with Accumulated Losses Reaching 20% or more of their Share Capital shall be applied on the company, In addition to applying any other regulations or instructions (if any) in this regard. - And based on the above-mentioned percentage of the company’s Accumulated losses (29.63%), this announcement takes the company out of the implementation scope of Article 150 of the companies’ law, due to the reduction of its losses to less than 50% of the share capital.