Methanol Chemicals Company (Chemanol) would like to announce to shareholders the Board of Directors’ decision dated 07-11-1445 corresponding to 15-05-2024 amending the Board’s recommendation to the Extraordinary General Assembly regarding increasing the company’s capital by issuing priority rights shares.

The previous recommendation was announced on 04-08-1445 corresponding to 14-02-2024.

Increase the company’s Capital Through Rights Issue with a value of (674,508,630) Saudi Riyals.

After the amendment, the Board recommendation becomes:

Increase the company’s Capital Through Rights Issue with a value of (350,000,000) Saudi Riyals instead of (674,508,630) Saudi Riyals. This is due to market changes.

Capital before the increase: SAR 674,508,630

Capital after the increase: SAR 1,024,508,630

Capital increase percentage: 51,89%

Number of shares before the increase: 67,450,863 shares

Number of shares after the increase: 102,450,863 shares

Capital increase method: issuance of 35 million shares, at a rate of (1) shares for every (1,927) share

By increasing its capital, the Company mainly aims at financing and implementing:

- its business plans and future projects for expansions and growth and

- raising its activities and levels of direct and indirect domestic investments, and

- raise its financial solvency and decrease the borrowing rates and the costs incurred thereof.

It is worth mentioning that the Company has recently obtained the Ministry of Energy’s approval for the allocation of Natural Gas for several projects including: the Methanol Expansion project to increase Chemanol’s current output by around 100,000 metric tons as well as to Chemanol’s new specialty chemicals complex to produce several strategic chemicals in the Kingdom.

This increase will contribute to reduce production costs and generate additional value to Chemanol. Furthermore, the above-mentioned projects align with the Chemanol’s strategic growth plans to diversify and grow its business while serving the Kingdom’s Chemical sector plans of vision 2030.

Approvals: The Recommendation to Increase the Company's Capital is subject to the approval of the relevant regulatory authorities and the approval of the Extraordinary General Assembly.

AL Wasatah AL Maliah Company “Wasatah Capital” was appointed as a financial advisor and an underwriter for the offering, an announcement will be made later when the company’s capital increase application file is submitted to the Capital Market Authority for approval.