Shareholders of Neimeth International Pharmaceuticals Plc have approved the plan of the board to raise the sum of N5 billion through a hybrid offer of rights to existing shareholders and private placement. The money will be used to finance major long term expansion projects.
The company will raise N3.67 billion through Rights Issue and N1.32 billion through private placement.
The sum of N3,679,618,625 will be raised by way of a Rights Issue at the discounted cost of N1.55 per 50 Kobo share. The company’s shares traded above N1.70 Kobo for most of the month of March, 2022. To achieve this the shareholders approved the creation of 2,373,947,500 additional ordinary shares which will be allotted at the rate of five new shares for every four shares currently held in the company. The shareholders also approved that the company should raise equity capital of N1,320,381,375.60 by way of a private placement at the premium price of N2.10 Kobo for 628,753,036 Ordinary Shares. The shareholders gave the approvals at the 63rd Annual General Meeting of the company held in Lagos recently.
Dr. Ambrosie Orjiako, Chairman of the Board, said the money is being raised for three key reasons. First, is the construction of a World class factory compliant to World Health Organisation (WHO) current Standards of Good Manufacturing Practice (cGMP) at Amawbia in Anambra State. Second is the completion of the ongoing facility upgrade at the company’s Oregun factory and thirdly to boost working capital.
Source: The Sun