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, it said, will be used to finance major long-term expansion projects.
The shareholders gave the approvals at the 63rd annual general meeting of the company held in Lagos recently.
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The company is expected to raise N3.67 bn through Rights Issue and N1.32 bn through private placement.
The sum of N3.7bn will be raised by way of a Rights Issue at the discounted cost of N1.55k per 50 Kobo share.
The company’s shares traded above N1.70 Kobo for most of the month of March 2022.
In order to achieve its target, the shareholders approved the creation of 2.4bn 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 raises equity capital of N1.3bn by way of a private placement at the premium price of N2.10 Kobo for 628,753,036 Ordinary Shares.
Chairman of the Board, Dr Ambrosie Orjiako said the money is being raised for three key reasons, which are the construction of a world-class factory compliant with the World Health Organisation (WHO) current Standards of Good Manufacturing Practice (cGMP) at Amawbia in Anambra State, the completion of the ongoing facility upgrade at the Company’s Oregun factory and to boost working capital.
