Jabal Omar Development Company concluded two debt settlement agreements with the Central District Cooling Company (the first creditor) and the Makkah Construction and Development Company (the second creditor) to transfer the debts owed to them by issuing new shares in their favor in the company by increasing the company’s capital.

The company said in a statement to Tadawul Saudi Arabia, today, Wednesday, that it aims, through the potential deal, to settle the debts owed by the company to creditors, which total approximately 547.5 million riyals, which will result in improving the company’s liquidity ratios, its financial indicators, and its ability to achieve its growth goals. . The capital increase will not require any financial contributions from shareholders.

The company explained that the debt settlement agreement with the first creditor, “Central District Cooling Company”, was concluded on December 20, 2023, according to which the two parties agreed to settle the debts owed to the first creditor, amounting to 237.9 million riyals (arising from dues related to the district cooling concession contract for the Jabal Omar development project). concluded between the company and the first creditor) in exchange for issuing new shares in the company for the benefit of the first creditor) and the number of shares issued will be determined based on the closing price of the trading day preceding the date of the extraordinary general assembly for approving the potential deal, in accordance with the provisions of the agreement.

It stated that the debt settlement agreement with the second creditor, “Makkah Construction and Development Company,” which was concluded on December 20, 2023 AD, under which the two parties agreed to settle the remaining debts owed to the second creditor, amounting to 309.56 million riyals (representing the remaining debt owed by the company towards the second creditor, arising from the purchase of… The company receives the cash share of the second creditor in the company that was held on behalf of real estate owners who had not completed their legal and regulatory documents, in exchange for issuing new shares in the company for the benefit of the second creditor (the number of shares issued will be determined based on the closing price of the trading day preceding the date of the General Assembly other than Regular procedures for approving the potential deal, according to the provisions of the agreement.

The two settlement agreements are subject to the fulfillment of the following main terms and conditions: 1) obtaining the necessary regulatory approvals (specifically the approval of the Capital Market Authority and the Saudi Stock Exchange Company (Tadawul) for the purpose of issuing and listing the new shares), and 2) obtaining any required approvals from third parties whose approval is Required to implement the potential transaction, and 3) obtain the approval of the extraordinary general meeting of the potential transaction.

The company said that it will detail the terms and conditions of the two agreements in the shareholders’ circular, which will be published later after obtaining the relevant regulatory approvals.

Jabal Omar Development stated that both creditors are related parties to the potential deal, as Makkah Construction and Development Company is a related party as one of the company’s major shareholders, and the Central District Cooling Company is a related party as it is affiliated with the company.

She said that she will announce any future developments in this regard if they become available.