NIGERIA – The Board of Directors of Neimeth Pharmaceuticals, a company that is into manufacturing and marketing of pharmaceuticals and animal health products, has revealed plans to raise N5 billion (US$13.11m) in additional equity upon approval by shareholders of the company, reports Nairametrics.
The fund will help the company’s management to execute key strategies that will reposition the company as a leader in the healthcare industry, with the hope to deliver better returns on investment to shareholders.
The additional equity financing will also increase Neimeth’s outstanding shares, which will dilute earnings and impact the Company’s stock value for existing shareholders.
The information was contained in a press release published on the NSE and signed by the Company Secretary, Mrs. Florence Onhenekwe.
The disclosure is part of the resolutions reached at the Board of Directors meeting of 15th January 2021. At the end of the meeting, it was resolved that the company would raise additional equity to the tune of N5 billion (US$13.11m).
In line with this development, a board resolution proposing to raise equity will be presented at the Annual General Meeting of the Company scheduled to hold on 9th March 2021.
The Board of the Company is yet to disclose if the additional equity would be a rights issue or a private placement, as the details of the additional N5 billion (US$13.11m) equity set to be raised are yet to be finalized.
The move has the potential to trigger a sell-off of the company shares on the Nigerian Stock Exchange.
Neimeth comprehensive income for the year ended 30 September 2020 recoreded an increase in turnover to N2.839 billion (US$7.45m) compared with N2.371 billion (US$6.22m) in 2019.
However, profit for the year from continued operation dropped by 3.48% to N212.476 million (US$0.56m) compared with N220.147 million (US$0.58m) in 2019.
Neimeth quoted on the Nigerian Stock Exchange was incorporated on 30 August 1957 as a limited liability company and commenced operation in January 1958. On 14 May 1997, Pfizer Inc. NY divested from the Company through a management buyout.
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