Tadawul-
Element List Explanation
Introduction With reference to the announcement by Raydan Food Company (the “Company”) published on Tadawul dated 02-12-1446H, corresponding to 29-05-2025G, regarding the Board of Directors’ recommendation to reduce the Company’s capital and subsequently increase the Company’s capital through a Rights Issue Offering, and with reference to the resolution of the Extraordinary General Meeting dated 11-05-1447H, corresponding to 02-11-2025G, approving the reduction of the Company’s capital from 158,084,670 Saudi riyals to 73,136,030 Saudi riyals, and the amendment to the Board of Directors’ recommendation dated 03-12-1447H, corresponding to 20-05-2026G, relating to the reduction of the capital from 73,136,030 Saudi riyals to 21,940,809 Saudi riyals by reducing the nominal value per share from ten (10) Saudi Riyals to three (3) Saudi Riyals per share.
In view of the increase in the Company’s total accumulated losses as reflected in the interim financial results for the period ended 30/06/2026G, the Company would like to announce the Board of Directors’ resolution dated 20-04-1448H, corresponding to 01-10-2026G, to amend its recommendation regarding the reduction of the Company’s capital as follows:
The Company’s capital prior to the reduction is 73,136,030 Saudi riyals; the capital after the reduction is 14,627,206 Saudi riyals, representing a reduction of 80% of the Company’s capital.
Number of shares before the reduction: 7,313,603 common shares; number of shares after the reduction: 7,313,603 common shares.
Reason for the capital reduction: Restructuring the Company’s capital to write off an amount of 58,508,824 Saudi riyals from accumulated losses.
Method of capital reduction: Reducing the nominal value per share from ten (10) Saudi riyals per share to two (2) Saudi riyals per share.
Impact of the capital reduction on the Company’s liabilities, operations, or financial, operational, or regulatory performance: The capital reduction will have no material impact on the Company’s liabilities, operations, or financial, operational, or regulatory performance.
Effective Date of the Reduction: The end of the second trading day following the Extraordinary General Meeting at which the capital reduction is approved.
The Company will announce any material developments related to this matter in a timely manner in accordance with the relevant regulatory requirements. An announcement will also be made in a timely manner upon submission of the application for the Company’s capital reduction to the Capital Market Authority for its approval.
While maintaining the previous recommendation regarding the increase in the Company’s capital through the issuance of rights shares in the amount of 105,000,000 Saudi riyals without change, the Company aims primarily to use the capital increase to implement its expansion plans, support working capital, and strengthen its financial position.
Record Date: Eligibility to subscribe shall be limited to shareholders who own shares on the date of the Extraordinary General Meeting that approves the capital increase through the offering of rights shares, and who are registered in the Company’s shareholder registry with the Depository Center at the end of the second trading day following the date of the Extraordinary General Meeting.
The Company also wishes to note that the capital increase is subject to the approvals of the relevant regulatory authorities and the Extraordinary General Meeting.
The Company will announce any material developments regarding this matter in a timely manner in accordance with the relevant regulatory requirements. An announcement will also be made in a timely manner upon submission of the application for the Company’s capital increase through a Rights Issue Offering to the Capital Market Authority for its approval.
Previous Announcement Raydan Food Company announces the latest developments regarding the Board of Directors’ recommendation to reduce the Company’s capital and subsequently increase the Company’s capital through a Rights Issue Offering
Date of Previous Announcement on Saudi Exchange’s Website 2026-05-21 Corresponding to 1447-12-04
Hyperlink to the Previous Announcement on the Saudi Exchange Website Click Here
Latest Developments Of The Announced Event The Company would like to announce the Board of Directors’ resolution dated 20-04-1448H, corresponding to 01-10-2026G, to amend its recommendation regarding the reduction of the Company’s capital as follows:
The Company’s capital prior to the reduction is 73,136,030 Saudi riyals; the capital after the reduction is 14,627,206 Saudi riyals, representing a reduction of 80% of the Company’s capital.
Number of shares before the reduction: 7,313,603 common shares; number of shares after the reduction: 7,313,603 common shares.
Reason for the capital reduction: Restructuring the Company’s capital to write off an amount of 58,508,824 Saudi riyals from accumulated losses.
Method of capital reduction: Reducing the nominal value per share from ten (10) Saudi riyals per share to two (2) Saudi riyals per share.
Impact of the capital reduction on the Company’s liabilities, operations, or financial, operational, or regulatory performance: The capital reduction will have no material impact on the Company’s liabilities, operations, or financial, operational, or regulatory performance.
Effective Date of the Reduction: The end of the second trading day following the Extraordinary General Meeting at which the capital reduction is approved.
The Company will announce any material developments related to this matter in a timely manner in accordance with the relevant regulatory requirements. An announcement will also be made in a timely manner upon submission of the application for the Company’s capital reduction to the Capital Market Authority for its approval.
While maintaining the previous recommendation regarding the increase in the Company’s capital through the issuance of rights shares in the amount of 105,000,000 Saudi riyals without change, the Company aims primarily to use the capital increase to implement its expansion plans, support working capital, and strengthen its financial position.
Record Date: Eligibility to subscribe shall be limited to shareholders who own shares on the date of the Extraordinary General Meeting that approves the capital increase through the offering of rights shares, and who are registered in the Company’s shareholder registry with the Depository Center at the end of the second trading day following the date of the Extraordinary General Meeting.
The Company also wishes to note that the capital increase is subject to the approvals of the relevant regulatory authorities and the Extraordinary General Meeting.
The Company will announce any material developments regarding this matter in a timely manner in accordance with the relevant regulatory requirements. An announcement will also be made in a timely manner upon submission of the application for the Company’s capital increase through a Rights Issue Offering to the Capital Market Authority for its approval.
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 The Company will announce the invitation to its valued shareholders to attend the Extraordinary General Meeting to vote on the Board of Directors’ recommendation upon completing the necessary relevant regulatory approvals. The Company will also announce any material developments that are required to be disclosed in a timely manner.
It should be noted that the Company had previously appointed, on 03-12-1447H, corresponding to 20-05-2026G, Wasatah Capital as the Financial Advisor for the capital reduction process and for submitting the Company’s capital reduction application to the Capital Market Authority, and as the Financial Advisor and Underwriter for the capital increase process and for submitting the Company’s capital increase application to the Capital Market Authority to obtain the necessary approvals.