Drake & Scull International PJSC’s (DSI) Capital Increase

Capital Increase:

In its meeting held on 1 April 2024, the General Assembly resolved to increase the Company's issued share capital from AED 1,070,987,747 (one billion and seventy million and nine hundred and eighty seven thousand and seven hundred and forty seven Dirhams) up to an amount not exceeding AED 3,470,987,747 (three billion and four hundred and seventy million and nine hundred and eighty seven thousand and seven hundred and forty seven Dirhams), by way of a capital increase (the “Capital Increase”). The Capital Increase will be for an amount of up to AED 600,000,000 (six hundred million Dirhams), by creating up to 2,400,000,000 (two billion four hundred million) new shares (the “New Shares” and each a “New Share”) at an issue price of AED 0.25 (the “Issue Price”) and a discount price of AED 0.75 with a nominal value of AED 1.00 per New Share.

Purpose of Capital Increase:

The Company intends to use the net proceeds from the Capital Increase as follows: (i) to pay for mandatory accounts payable (former employees, government fees, etc.) and other restructuring expenses; (ii) cash settlement with junior creditors as well as the purchase of mandatory and optional MCS; and (iii) to enhance working capital, capital expenditures and support operations as well as future growth and any potential acquisitions.