By Goddy Egene
The Board of Directors of Neimeth International Pharmaceuticals Plc has resolved that the N5 billion capital raising approved by shareholders last March would be sourced through rights issue and special/private placement.
Shareholders had at the 62nd annual general meeting (AGM) approved and authorised the board to work out the best options to raise N5 billion for the recapitalisation of the firm. In a notification to the Nigerian Exchange Limited (NGX) yesterday, the company said at an emergency meeting held on Monday, the board resolved that about N3.679 billion be raised through rights issue of 2.373 billion shares of 50 kobo each at N1.55 per share in the ratio of five for every four shares already held. The board resolved that N1.320 billion be raised through a special/private placing of 628.753 million shares at N2.10 per share.
According to the company, the funds would be used to support the financing of the expansion plan to boost its performance and increase value for investors. The plan involves an upgrade of current plant at Oregun, Lagos to take up new products while increasing manufacturing capacity for existing products and the construction of a new multi-product facility that will be tailored to comply with the World Health Organization (WHO) current standards of Good Manufacturing Practice (WHO cGMP) at Amawbia in Anambra State.
The Chairman of Neimeth, Dr. Ambrosie B.C. Orjiako had told shareholders that the plans would help the company achieve a quantum leap to become a leading healthcare conglomerate in Africa.
“Our plan is to significantly upgrade the Oregun factory and enhance its output and ensure continued compliance with current standards of Good Manufacturing Practice (cGMP)” he said.
According to Orjiako, with facilities, Neimeth will be in a position to meet the demands for her key products and introduce new ones.
He said the two plants are critical to the attainment of the company’s five year Strategic plan and new corporate vision “to be the leading innovative healthcare provider out of Africa.”
The Managing Director/CEO of Neimeth, Matthew Azoji, said the plan was to make the company become a manufacturing hub for medicines and centre of excellence for pharmaceutical development in Africa. He said the Amawbia plant will be a multi-products plant and will be presented to the World Health Organisation (WHO) for certification under her current standards of Good Manufacturing Practice (cGMP).
Meanwhile, trading at the stock market began the new month on a bearish note as the Nigerian Exchange (NGX) Limited All-Share Index (ASI) fell marginally by 0.06 per cent to be at 38,414.37. Market capitalisation shed N12.3 billion to close at N20.022 trillion.
