MUSCAT: Gulf Stone, a publicly traded company, announced on Sunday that it is exploring options to increase its capital with a view to reviving the operation of its Suhar-based factory, which is currently shuttered due to financial difficulties.
The company said in a filing to the MSX that an extraordinary general assembly (EGM), that was convened recently, had urged the board of directors to study ways to remedy the company’s situation by raising the capital. Accordingly, the board of directors is currently negotiating with potential investors with the aim of restructuring the company, it said in the filing, noting that no agreement has been reached yet.
Earlier, on January 8, 2023, the regulator suspended trading in the shares of Gulf Stone Company following the latter’s disclosure that it has halted operations of its Suhar plant due to acute cash-flow challenges. The pause in operations, which was effective from January 5, 2023, was in response to “severe cash flow problems” at the company.
In a separate filing to CMA, the company’s Chairman attributed Gulf Stone’s financial troubles to a decline in sales of its products following a slump in demand brought on by the pandemic.