Neimeth To Begin N3.67bn Rights Issue

By July 9, 2022 Uncategorized

Neimeth International Pharmaceuticals Plc. has held a Completion Board Meeting to float a Rights Issue of N3.67 billion through the Nigerian capital market.

The Rights Issue which will commence August 3 will be used to raise the sum of N3,679,618,625 at the cost of N1.55k per 50Kobo share.

The shareholders of the company had in March at the 63rd Annual General Meeting (AGM) 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.

Chairman of the board, Dr Ambrosie Orjiako, said the money is being raised to construct a new multi products facility that will be tailored to comply with the Word Health Organization (WHO) current Good Manufacturing Practice (c GMP) at Amawbia in Anambra State. It is also to be used to support the company’s strategic plan of maintaining a sustainable capital structure, leveraging the company’s balance sheet, reducing cost of borrowing or finance costs and funding working capital.

The Managing Director/CEO, Pharm. Matthew Azoji, said the capital market is the most viable and cheaper option to source long term funds because of the high cost of funds through other sources.

Orjiako said these projects will not only sustain the current upbeat performance of the company but will give her a quantum leap into the league of leading global healthcare commodities producers.

The fortunes of Neimeth have taken an upward turn since 2018 when it returned to profitability after nearly a decade of predominant losses.  From a loss of N404.9 million in 2017, the company made a profit of N166.4 million in 2018, N304.4 million in 2019, N297.3 million in 2020 at the upsurge of COVID pandemic and N365.2 million in 2021.

Orjiako said the board is working with management to ensure that the growth trajectory is sustained.

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