| Introduction | The board of directors of Fitaihi Holding Group recommended reducing the Company’s capital as follows: |
| Date of Board Meeting | 2021-03-04 Corresponding to 1442-07-20 |
| Capital before decrease | 550,000,000 |
| Capital after decrease | 275,000,000 |
| Percentage of Capital decrease | 50 % |
| Number of Shares before Decrease | 55000000 |
| Number of Shares after Decrease | 27500000 |
| Reasons for the Capital Decrease | The capital is over the Company’s needs. |
| Method of Capital Decrease | Canceling 50% of the number of shares and compensating the shareholders for that. |
| Impact of the Capital Decrease on the Company’s Obligations, Operations or Operational, Financial or Organizational Performance of the Company | The reduction process will be funded by using the surplus cash balances of the Company with the announcement of all the details through the Shareholders’ Circular following the procedures. There will be no material impact of the capital reduction on the Company’s financial or operating obligations, operations, or performance. The management expects the reduction to have a positive impact on the ratios of the Company’s performance and profitability indicators. |
| Date of reduction | The end of the second trading day following the end of the creditors’ objection period. |
| Approvals | The reduction process of the capital and the number of shares is conditional on the approval of the official authorities and the extraordinary general assembly of the Company. |
| Appointment of a Financial Advisor and the Submission of the Application for Capital Decrease to CMA | The appointment of the financial advisor for the reduction process will be announced later on, as well as the announcement of the application file submission for capital reduction to the Capital Market Authority for approval, in addition to any other substantial developments. |
