The Capital Market Authority Board has decided to refer the Chairman and members of the Board of Directors of the Saudi Paper Manufacturing Company, the Audit Committee, and the Chief Financial Officer for the Board’s term from March 4, 2012,March 4, 2012, to April 26, 2015, as well as the Chairman of the Board of Directors and the Chief Financial Officer for the term from April 27, 2015, to April 26, 2018, to the Public Prosecution; on suspicion that they engaged in actions that created a false and misleading impression regarding the value of the company’s securities.

In detail, the Authority stated: Based on the Capital Market Authority’s responsibilities to protect citizens and investors from unfair and improper practices involving fraud, deception, and manipulation, and to ensure fairness, efficiency, and transparency in securities transactions, and pursuant to Article 17 of the Capital Market Law, and with reference to the announcement by the Saudi Paper Manufacturing Company on the Capital Market Authority’s “Tadawul” on 01/02/1441 AH, corresponding to 09/30/2019 AD, regarding the company’s quarterly financial statements for the period ending 06/30/201930 AD, published on the Tadawul website, and the reservation of the external auditor appointed by the Company regarding the appropriateness of the accounting treatment followed by the Company and approved by the statutory auditor in the process of selling and repurchasing land that took place during the years from 20to 2016, which resulted in the Company’s Board of Directors removing the qualification by correcting the previously applied accounting treatment, adjusting the value of the reclaimed land, and reducing its value to what it was in the Company’s records prior to the sale transaction that took place in 2012, In accordance with the company’s aforementioned announcement, the Authority wishes to inform market participants and investors in the financial market that a decision of the Authority’s Board has been issued referring the Chairman and members of the company’s Board of Directors, the Audit Committee, and the Chief Financial Officer for the Board’s term from March 4, 2012,March 4, 2012, to April 26, 2015, and the Chairman of the Board of Directors and the Chief Financial Officer for the term from April 27, 2015, to April 26, 2018, to the Public Prosecution, on suspicion that they engaged in acts that created a false and misleading impression regarding the value of the securities of the Saudi Paper Manufacturing Company, noting that the case against the suspects has been filed with the Securities Disputes Resolution Committee by the Public Prosecution.

The Authority hereby reaffirms its commitment to enforcing the Capital Market Law and its implementing regulations, and to protecting the market from unlawful practices, noting that those harmed by such practices have the right to file an individual or class-action lawsuit for compensation with the Securities Disputes Resolution Committee, provided that a complaint is first submitted to the Authority (via the link) regarding this matter, in accordance with Article 30 of the Capital Market Law.