Muscat: Sweets of Oman SAOG, an Omani confectioner well-known for its production of world-class sweets at competitive costs, has decided to go into liquidation.
The announcement came following a meeting of the publicly-traded company’s Board of Directors on Wednesday, November 23, 2022.
In a filing to the Capital Market Authority (CMA) on Thursday, the company cited its “deteriorating financial position” that could not be suitably resolved within the timeframe stipulated by the CMA.
“The Board, after discussion and deliberation of the company’s burden and liabilities, has agreed to proceed and to go ahead – for the sake of protecting shareholders’ interests, after a lapse of three years of attempts to boost the company’s activities, inviting several investors who were ready for partial investment in the company – restructure in the light of the growing operational challenges and full stoppage of the company’s activities for one and a half year,” the deputy chairman noted in the filing.
An investor who had initially shown interest in investing in the troubled firm failed to submit any commitment in writing, he stated.
Consequently, the Board has decided to proceed and go ahead with liquidation procedures, the deputy chairman said, adding that an EGM would be convened to approve this decision.
Sweets of Oman SAOG posted a comprehensive net loss of RO 2.476 million in fiscal 2021, which came on top of a loss of RO 4.511 million in 2020.