The Capital Market Authority approves the capital increase request for Jabal Omar Development Company through debt conversion
Wednesday, July 06, 2022 at 4:22 PM
The CMA has issued its resolution approving Jabal Omar Development Company’s request to increase its capital through converting debt amounted SAR 5,301,201,080 This approval is conditional on the Company’s extraordinary general assembly approval and completion of the necessary procedures in relation to the applicable regulations.
A shareholders' circular will be published clarifying reasons for the capital increase and its objectives within sufficient time prior to the Extraordinary General Assembly Meeting to enable shareholders to vote on the capital increase through debt conversion.
A voting decision without reading the shareholders' circular carefully or fully reviewing its content may involve high risk. Therefore, shareholders should carefully read the circular in order to make a well-informed decision when voting on the capital increase resolution for the said purpose. If the shareholders' circular proves difficult to understand, it is recommended to consult with an authorized financial advisor.
The CMA’s approval of a particular company’s application to increase its capital should never be viewed as an endorsement of the feasibility of the capital increase for the purposes of a transaction. The CMA’s approval of a company’s application to increase its capital merely means that the regulatory requirements as per the Capital Market Law and its Implementing Regulations have been met.