Saudi paper company to increase capital by $26.6mln

Saudi paper company to increase capital by $26.6mln

Saudi Paper Manufacturing Company (SPM) is to increase its capital by SAR 100 million ($26.67 million) to purchase materials, upgrade assets to improve production and pay bank loans.An extraordinary general assembly of the company voted to approve the capital increase at the company headquarters in Dammam in Saudi Arabia's Eastern Province.Capital after the increase will be SAR 192 million, up from SAR 92 million, and the number of shares will increase to 19.2 million, up from 9.2 million.A statement to Tadawul, the Saudi Stock Exchange, said: “The company aims, through increasing its capital by offering rights issues shares, to purchase raw materials that are tree pulp to feed production lines in the Saudi Paper Manufacturing Company and rebuild the company's assets to improve production quality and buy machines to increase the amount of production in paper transfer company and pay off part of the bank loans owed by the company.”In its most recent financial report for the third quarter of 2020, published in early November, auditors expressed material uncertainties related to the business as a going concern, which said its current liabilities exceeded its assets by SAR 136.7 million, but said restructuring of term loans to SAR 474 million had