‎Molan adopts revised plan to address accumulated losses, financial restructuring

‎<p ><img src="https://argaamplus.s3.amazonaws.com/dfe76e03-64a4-4ede-8180-a246001535f4.png" ></p> <p class="ckeCaption" >Logo ofMolan Steel Co.</p> <hr> <p ><a href="http://www.argaam.com/en/tadawul/nomu/molan" target="_blank">Molan Steel Co.</a> approved yesterday, Oct. 4, a revised plan to address its accumulated losses and financial restructuring, replacing the previously announced plan.</p> <p ></p> <p >The updated plan aims to offset accumulated losses, increase capital, and address the decline in the company’s per-share par value below SAR 1. It will be submitted to the extraordinary general meeting (EGM) for approval, according to a statement to Tadawul today, Oct. 5.</p> <p ></p> <p >Molan said accumulated losses reached SAR 37.58 million, or 141.26% of its SAR 26.6 million capital, per the condensed interim financial statements for H1 2026.</p> <p ></p> <p ><strong><span >The revised plan is made up of six phases:</span></strong></p> <table border="1" cellpadding="0" cellspacing="0" width="100%"> <tbody> <tr> <td > <p ><strong>Stage</strong></p> </td> <td > <p ><strong>Details</strong></p> </td> </tr> <tr> <td > <p ><strong>1</strong></p> </td> <td > <p ><span >Withdraw an earlier capital increase file through a rights issue that has been submitted to the Capital Market Authority (CMA), as resolved by the board on Aug. 30.</span></p> </td> </tr> <tr> <td > <p ><strong>2</strong></p> </td> <td > <p ><span >Increase the Molan’s stock par value from SAR 1 to SAR 10 and reduce the number of shares from 26.6 million to 2.66 million, without changing the company’s capital, in line with the board’s recommendation announced on Sept. 6.</span></p> </td> </tr> <tr> <td > <p ><strong>3</strong></p> </td> <td > <p >Increase capital by converting debt owed to Dar Al-Takamol Holding Co. of up to SAR 15 million under the interest-free loan agreement signed in May.</p> <p >The amount will be limited to the outstanding debt at the time of implementation, with preemptive rights suspended.</p> <p >Dar Al-Takamol Holding is a major shareholder and related party.</p> </td> </tr> <tr> <td > <p ><strong>4</strong></p> </td> <td > <p >Increase capital by issuing shares with preemptive rights suspended, for an amount not exceeding 15% of capital.</p> </td> </tr> <tr> <td > <p ><strong>5</strong></p> </td> <td > <p >Reduce capital to offset accumulated losses outstanding at the time by canceling a corresponding number of shares, without changing the shares’ par value.</p> </td> </tr> <tr> <td > <p ><strong>6</strong></p> </td> <td > <p ><span >Increase capital through a rights issue, representing a new capital top-up plan, the value and terms of which are yet to be determined.</span></p> </td> </tr> </tbody> </table> <p></p> <p >The company said each stage requiring EGM approval will be presented for a go-ahead at the relevant time. Implementation will be subject to CMA approval and completion of regulatory requirements, with the company to announce each stage in due course.</p> <p ></p> <p >According to <span ><strong>Argaam </strong></span>data, Molan received a notice in August that its average closing share price had fallen below the minimum threshold, with a three-month period to take corrective measures starting Aug. 3, in accordance with the CMA’s listing rules.</p> <p ></p> <p >The company said at the time that the measures would include a share consolidation to bring the closing share price to at least SAR 3 and convening an EGM to vote on the board’s recommendation to consolidate the shares, unless the closing share price rose to SAR 3 or above during the period.</p>

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Argaam - Company Disclosures · Stock Exchange/Regulatory Announcements

Published

5th October 2026

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argaam.com

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