"Saudi Fish" Studies Strategic Options for Business Continuity

Listen to the article, the audio text is automatically generated by an automated system.

The Board of Directors of the Saudi Fish Company announced the strategic direction of the company for the upcoming phase, in light of the extraordinary general assembly's refusal to increase the company's capital through a rights issue.

The company clarified in a statement on "Tadawul Saudi" today, Wednesday, that the Board of Directors held an emergency meeting on October 4, 2026, to discuss the implications of the refusal to increase capital, the available options for the continuity of the company's operations, and fulfilling its obligations, in addition to discussing the trends and strategic plan for the upcoming phase.

The Board of Directors issued its decision by circulation on October 6, 2026, which included studying several strategic options, the most prominent of which is the possibility of increasing capital in exchange for the lands granted to the company by the state in the cities of Riyadh and Jeddah, without the need for cash injection from the shareholders.

It pointed out that increasing capital in exchange for the lands, which were approved for transfer to the company under Royal Order No. 41355 dated 10 Ramadan 1433 AH corresponding to July 29, 2012, would enhance the company's financial position and contribute to reducing between 12 and 14.7 million dollars (45 and 55 million riyals) of the obligations due to the state directly, provided that the process is subject to the approvals of the relevant authorities and the extraordinary general assembly in accordance with the relevant laws and regulations.

The options also include studying the method of settling existing financial obligations through the sale of some underutilized assets, settling creditors' dues, and negotiating a schedule for part of the obligations in line with the company's expected cash flows.

The strategic direction also involves studying the transformation of the company from an operational activity based on fish farming and wholesale fish sales to an investment company in the food sector, aiming to enhance the efficiency of asset utilization and support the sustainability of returns in the long term.

The company is also working to complete the procedures for selling a 51% ownership stake in Al-Huraida Aquaculture Company, along with transferring the related lease and licenses, and expects that the completion of the deal will positively reflect on the company's liquidity by the year 2027.

The company anticipated that these steps, if fully implemented, would contribute to reducing the level of obligations, improving its financial structure, and enhancing its ability to invest in the food sector.

The company identified a number of potential risks, including the failure to obtain the necessary approvals for increasing capital in exchange for the lands, or the inability to sell underutilized assets at the expected times or prices, in addition to the possibility of creditors not agreeing to the proposed scheduling or settlements, and continued pressure on liquidity.

The company warned that if it is unable to fully or partially implement this strategy, it may face difficulties in meeting its financial obligations to creditors and managing its operational activities, which could lead it, if these conditions persist, to take the necessary legal and regulatory actions, which may include bankruptcy, liquidation, or financial reorganization.

The board of directors confirmed that the initiation of the study of these options does not represent a final decision regarding the company's strategic direction, noting that the company will disclose any significant developments in due course, in accordance with the financial market system and its executive regulations.