Flex Resorts and Real Estate Company held its Extraordinary General Meeting (EGM) Tuesday, 13 June 2023, and approved to reduce the company’s authorized, issued, and paid-up capital from KWD 5.75 million to KWD 4.03 million, i.e., a reduction of KWD 1.72 million representing a portion of the company's accumulated losses as recorded in the company's financial statements for the financial year ended 31 December 2022.
It was also approved to increase the company’s authorized, issued, and paid-up capital from KWD 4.03 million to KWD 5 million. This represents an increase of KWD 970,000, distributed over 9.7 million shares, at a nominal value of 100 fils per share. The allocated increase will be assigned to one of the company's creditors who has agreed to waive the debt owed to them by the company, as recorded in the financial statements ended 31 December 2022. The amount of the debt will be transferred to the capital increase account.
The EGM also approved modifications to Article (6) of the Memorandum of Incorporation and Article (5) of the Articles of Association, which pertain to the company's capital, as follows: The company's capital has been distributed over 50 million shares, at a nominal value of 100 fils per share. The distribution of shares is as follows:
• A fully paid in cash capital of KWD 4.5 million, distributed over 45 million shares.
• A fully paid in-kind capital of KWD 500,000, distributed over 5 million shares.