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Addendum explanatory announcement from Tihama Advertising, Public Relations and Marketing Company regarding its announcement of filing a lawsuit at the Securities Disputes Resolution Committee against Middle East Financial Investment Company (MEFIC Capital).

TAPRCO 4070 -16.37% 14.15 -2.77
Element List Explanation
Introduction With refence to the company’s announcement on October 8, 2025, with regards to filing a lawsuit at the Securities Disputes Resolution Committee against Middle East Financial Investment Company (MEFIC Capital),

- The company clarifies that on May 6, 2024, it signed an investment agreement in the Saudi Film Fund, managed by MEFIC Capital, for a total amount of (37,500,000) Saudi Riyals, representing a (10%) stake in the fund's capital.

- According to the terms and conditions of the agreement and the fund's regulations, the company is committed to transferring (40%) of the total contribution – equivalent to (15 million Saudi Riyals) during the initial offering period, the remaining percentage (60%), equivalent to (22,500,000 Saudi riyals), will be transferred as needed based on the approved investments and liabilities that need to be completed or settled by the fund as stipulated in the agreement.

- But on June 23, 2024, the former CEO transferred 37,500,000 Saudi Riyals to the fund. The company subsequently received correspondence from the fund manager confirming the deposit of 22,500,000 Saudi Riyals into a related Murabaha fund called the MEFIC Murabaha Fund.

- Upon the company's request, an amount of SAR 24,297,197.07 was withdrawn on August 21, 2025, representing the amount deposited in the Murabaha fund (SAR 22,500,000) plus the profits amounting to (SAR 1,797,197.07).

- On October 6, 2025, the company filed a formal lawsuit at the Securities Disputes Resolution Committee demanding the termination of the agreement and the return of the amounts transferred to the fund, based on clause (8-i) of the terms and conditions.

- The company also clarifies that the fund manager is still demanding the remaining amount of the contribution (60%), and that this obligation is subject to a legal dispute to be settled before the competent committee.

Date of Posting the Previous Announcement of Development on Saudi Exchange’s Website 2025-10-08 Corresponding to 1447-04-16
Hyperlink to the Previous Announcement Click Here
Change on the Development NA
Financial Impact on the change NA
Additional Information This announcement serves as a clarification and supplement to the previous disclosure, and the company affirms its commitment to fully comply with the offering rules and ongoing obligations, and to disclose any material developments concerning this matter in a timely manner.

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