Tuesday, 9th August 2022
<To guardian.ng
Search
Breaking News:

Neimeth hopeful of achieving full subscription on N3.67b rights

By Helen Oji
05 August 2022   |   2:36 am
Amid rising inflation and other macro-economic challenges bedevilling the nation's equities market, Neimeth Pharmaceuticals Plc has expressed optimism that the firm's N3.67 billion rights

Neimeth

Amid rising inflation and other macro-economic challenges bedevilling the nation’s equities market, Neimeth Pharmaceuticals Plc has expressed optimism that the firm’s N3.67 billion rights issue will be fully subscribed by investors.

Chief Executive Officer of the company, Matthew Azoji, who stated this in Lagos, also added that the company is strategising to continue to create value for shareholders.

According to him, “We are indeed concerned about the business environment because it is quite unpredictable currently. We are hopeful that we will succeed because our shareholders, the current board, own a significant portion of the shares because it is a rights issue.

“All our shareholders are going to be properly advised and educated through the investor relations activities that we are going to embark on. They will have the first access to their rights. So nobody can come as an external investor and take the rights issue like that because he has the funds.”

Azoji said the rights issue will be used to raise N3.67 billion at the price of N1.55 per 50 kobo share.

“We are seeking a total of N5 billion of investors’ funds through a hybrid offering of the rights issue and private placement. We want to raise N3.7 billion and N1.3 billion respectively from both offerings.

“To carry out the rights issue, the company had in March 2022, created 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 to existing shareholders”, he said.

According to him, the money is being raised to fund the company’s strategic expansion plans which include; the construction of a new plant in Anambra State scheduled to start operations in 2023, a facility upgrade of its Oregun plant and sustaining the company’s capital structure.

The company held a completion board meeting in Lagos to float a rights issue of N3.67 billion through the Nigerian capital market.

The rights issue which would take place in August would be used to raise N3,679,618,625 at the cost of N1.55k per 50kobo share.

Neimeth stated that its shareholders had in March 2022 at the 63rd annual general meeting, approved the creation of 2,373,947,500 additional ordinary shares, which would be allotted at the rate of five new shares for every four shares currently held in the company.

At the completion board meeting, the chairman, Dr. Ambrosie Orjiako, said the money was being raised to construct a new multi products facility that would be tailored to comply with the Word Health Organization’s current standards of good manufacturing practice at Amawbia in Anambra State.

“It is also to be used to support the company’s strategic plan of maintaining a sustainable capital structure, leverage the company’s balance sheet, reduce the cost of borrowing or finance costs and fund working capital,” he said.

In this article