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Salama Cooperative Insurance Company announces the developments regarding the use of proceeds from the rights issue

Salama Cooperative Insurance Company announces the developments regarding the use of proceeds from the rights issue which was held from 06-07-2015G to 03-08-2015G as follows:

1. Actual use of proceeds from the rights issue as of 15-10-2015G compared to what was disclosed in the rights issue prospectus:

a. Total proceeds from the capital increase amounted to SR 150,000,000.
b. Total direct and indirect expenses related to the capital increase amounted to SR 7,080,757.
c. Net proceeds from the capital increase amounted to SR 142,919,243.
d. An amount of SR 15,000,000 has been added to the statutory deposit consequent to the capital increase.
e. Remaining proceeds of SR 127,919,243 have been invested in local trade finance funds for short term.

2. Deviations in actual use of proceeds compared to the disclosure made in the rights issue prospectus:
a. A difference of SR 919,243 in the expenses related to the capital increase. The estimate of expenses related to the capital increase in the prospectus was SR 8,000,000. The difference is due to actual final expenses lower than what were initially estimated.

b. The estimated amount of short term investments in the rights issue prospectus was SR 76,200,000 while the actual amount is SR 127,919,243. The difference of SR 51,719,243 is due to the following reasons:

i. The estimated amount of investments in bonds and long term instruments and shares and other investment vehicles as disclosed in the prospectus has not been made since their decision is still under process. These total amounts of SR 50,800,000 are currently part of the short term investments.
ii. An additional amount of SR 919,243 in the short term investments is from the savings in expenses related to capital increase as mentioned in point 2.a of this announcement.