Tihama says accumulated losses reach 81% of capital

Logo of Tihama Advertising and Public Relations Co.

Tihama Advertising and Public Relations Co. announced that it will take the required legal procedures after its accumulated losses reached 81% of capital as of Dec. 31, 2021, according to a bourse statement.

To offset accumulated losses, the company announced earlier taking actions including the board of directors’ recommendation to cut capital by SAR 125 million through cancelling shares, and then increase capital by SAR 350 million via a rights issue.

Tihama then filed a request, on Feb. 9, with the Capital Market Authority (CMA) for capital reduction by SAR 125 million.

The firm said it is not possible currently to determine the expected date for the completion of the capital reduction process, as the reduction is subject to the relevant regulatory approvals, including the approval of the company's extraordinary general assembly (EGM), the statement added.

An EGM will be held for the purpose of reducing the capital after completing the necessary approvals as soon as possible, the advertising firm said, noting that it will announce any material update in this regard.