Riyadh – Mubasher: The Saudi Stock Exchange (Tadawul) on Monday announced the delisting of Mohammed Al Mojil Group’s shares as of Sunday, 7 May 2017.
Al Mojil traded under the symbol 1310.
The announcement follows a similar one made by the Saudi Capital Market Authority (CMA) released on Tuesday, 2 May.
The CMA’s decision came after Al Mojil failed to take the necessary measures to rectify its situation in accordance with the Capital Market Law and its implementation regulations, as per provisions in Article 150 of the Companies Law, the CMA said in its statement last week.
Boards and shareholders of Tadawul-listed firms of which losses reach or exceed 50% of capital were invited to remedy the conditions before the expiration of the given grace period.
Last month, the Saudi company had announced the resignation of its CEO. In March, four board members had resigned their positions owing to the growing uncertainty regarding the company’s future.
Mohammed Al Mojil Group last reported a net loss of SAR 8.8 million ($2.35 million) in February 2017, while net losses in the first two months of 2017 reached SAR 17.99 million.
Accumulated losses since the company's establishment until 28 February 2017 reached SAR 3.75 billion, representing 300% of the company’s SAR 1.25 billion capital, according to a bourse filing on Tuesday
