In line with the Capital Market Authority's (CMA) responsibilities to protect the citizens and investors from unfair and unsound practices and practices involving fraud, deceit, cheating or manipulation, and aiming to achieve fairness, efficiency and transparency in securities transactions, and based on Article (17) of the Capital Market Law, and in reference to the announcement of the Saudi Paper Manufacturing Company published on the Saudi Stock Exchange (Tadawul( website on 01/02/1441 H corresponding with 30/09/2019 G. with respect to the quarter financial statement for the period ending on 30/06/2019 G. published on Tadawul's website and the reservation of the external auditor appointed by the Company in relation to the accounting treatment carried out by the Company, which was approved by the auditor, regarding the lands sale and buy-back transactions carried out between 2012 G to 2016 G., which resulted in the removal of the reservation by the Company's board of directors  by correcting the previous accounting treatment and adjusting the value of the retrieved lands and reducing their value to the value that was stated in the Company's records prior to the sale transaction made in 2012 G., as it was stated on the Company's above-mentioned announcement; the CMA informs the investors and participants in the capital market that the CMA Board has issued its resolution that included the referral of the Company's board chairman and members, the audit committee, and the Chief Financial Officer for the board term from 03/04/2012 G. until 26/04/2015 G, in addition to the Company's board chairman and the Chief Financial Officer for the board term from 27/04/2015 G until 26/04/2018 G, to the Public Prosecution, for the suspicion that they carried out practices that led to creating a false and misleading impression with respect to the security value of the Saudi Paper Manufacturing Company. The Public Prosecution has filed the case against the suspects with the Committee for the Resolution of Securities Disputes.

The CMA assures its devotion to apply the Capital Market Law and its Implementing Regulations and protect the market from illegal practices. Any person affected by these acts is entitled to file a compensation claim, individually or collectively, to the Committee for the Resolution of Securities Disputes, provided that such claim is preceded by a complaint filed with the CMA (via this link) in this regard, as per Article 30 of the Capital Market Law.