Middle East Pharmaceutical Industries Co. (Avalon Pharma) shareholders will vote on the board’s recommendation to increase capital by 75% through a 3-for-4 bonus share issue, during an extraordinary general assembly meeting (EGM), to be held on May 11, according to a statement toTadawul. 
Capital Increase Details
Current Capital
SAR 200 mln
Current Number of Shares
20 mln
Proposed Increase
75% (3 shares for every 4 owned)
New Capital
SAR 350 mln
New Number of Shares
35 mln
Reason
To support the company’s growth strategy, enhance its capital base, and strengthen its financial position to implement its plans and activities, thereby contributing to enabling the company to expand and maximize returns on shareholders’ equity.
Method
Capitalizing SAR 150 mln from the retained earnings account
Record Date
Shareholders of record on day of extraordinary general meeting (EGM) that approves the capital hike and those registered with the Securities Depository Center Co. (Edaa) at the end of the second trading day after the record date
Shareholders will also vote on the appointment of the company’s external auditor from among the nominated candidates, based on the recommendation of the audit committee and the board of directors, to review the interim financial statements.
Other agenda items include voting on the amendment of Article (4) of the company’s bylaws, related to the company objectives.
Middle East Pharmaceutical Industries Co. (Avalon Pharma) shareholders will vote on the board’s recommendation to increase capital by 75% through a 3-for-4 bonus share issue, during an extraordinary general assembly meeting (EGM), to be held on May 11, according to a statement toTadawul.
Capital Increase Details
Current Capital
SAR 200 mln
Current Number of Shares
20 mln
Proposed Increase
75% (3 shares for every 4 owned)
New Capital
SAR 350 mln
New Number of Shares
35 mln
Reason
To support the company’s growth strategy, enhance its capital base, and strengthen its financial position to implement its plans and activities, thereby contributing to enabling the company to expand and maximize returns on shareholders’ equity.
Method
Capitalizing SAR 150 mln from the retained earnings account
Record Date
Shareholders of record on day of extraordinary general meeting (EGM) that approves the capital hike and those registered with the Securities Depository Center Co. (Edaa) at the end of the second trading day after the record date
Shareholders will also vote on the appointment of the company’s external auditor from among the nominated candidates, based on the recommendation of the audit committee and the board of directors, to review the interim financial statements.
Other agenda items include voting on the amendment of Article (4) of the company’s bylaws, related to the company objectives.
