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The Board of Directors of Al Hammadi Company for Development and Investment approved To construct a new hospital to replace the current Al Hammadi Hospital Olaya

ELEMENT LIST EXPLANATION
Introduction The Board of Directors of Al Hammadi Company for Development and Investment approved in its meeting held today, Thursday ,16 September,2021 To construct a new hospital to replace the current Al Hammadi Hospital Olaya. The New Hospital will consist of 300 beds and 120 clinics. It will provide general medical services, and In addition to that , it will provide oncology treatment , treatment of sports injuries, and rehabilitation
Date of Board Resolution in Regard to the Project 2021-09-16 Corresponding to 1443-02-09
Project Start Date first quarter 2022
Project Cost 450 million riyal
Financing method for the project 80% loans

 

20% internal cash flow

Expected completion date of the project first quarter 2026
Expected Impact on the Company’s Financial Results 30% increase in revenue
Expected Date on Which the Impact on the Financial Results of the Company will Start first quarter 2026
Expected Date for the Pilot Production of the Project to Begin first quarter 2026
Duration of the pilot production of the project two month
Expected date for the commercial production of the project first quarter 2026
Executing Party/Counter Party in the Project/Contract to be determined later
Related Parties none
Additional Information Operation at the current Al Hammadi Olaya Hospital will be suspended in October of 2021 and the financial impacts of the closure process would be as follows :

 

• Recording asset disposal losses of approximately 57 Million Saudi Riyals

• Decrease of the company's sales by about 10 % in the fourth quarter of 2021

• Company's management does not expect any significant negative impact on the company's profitability in the coming years as a result of the closure of Al Hammadi Hospital Olaya