Neimeth Records 100% Rights Issue Subscription, Raises N3.68bn

Neimeth International Pharmaceuticals Plc has recorded 100 per cent subscription in its recently concluded rights issue.

The company raised N3.68 billion from the sale of 2.374 billion units at N1.55 per share offered to existing shareholders through a rights issue.

The company, in a statement signed by its company secretary, Mrs. Florence Onyenekwe on the Nigerian Exchange Limited, said: “following close of its rights issue exercise on September 15, 2022 that it has received a No-Objection from the Securities and Exchange Commission (SEC) on the allotment of 2.374 billion ordinary shares at 41.55 per share on the basis of five new ordinary shares for every four ordinary shares held as at the close of business on April 22, 2022.”

According to the statement, the rights issue was fully subscribed, leading to fresh injection of N3.68 billion which will further position the company for growth, improve its capital structure, deleverage its balance sheet, and fund its working capital needs.

“The shares allotted will be credited to the CSCS account of allottees by the Registrars to the issue, in line with the basis of allotment of the shares as approved by the SEC,” it noted, adding that, allotment of shares will bring about a change in the shareholding structure of the company. 

Chairman, Neimeth International Pharmaceuticals, Dr. Ambrosie Orjiako, recently said, the company was raising funds for two key reasons of constructing a world-class factory compliant to World Health Organisation (WHO) Standards of Good Manufacturing Practice (cGMP) at Amawbia in  Anambra State and to boost its working capital.

He said, the projects would not only sustain the upbeat performance of the company but will give it a quantum leap into the league of leading global health care commodities producers.

He noted that the fortune of Neimeth had taken an upward turn since 2018, when it returned to profitability after nearly a decade of predominantly losses. Orjiako assured that the company is working to ensure that the growth trajectory is sustained.

Managing director, Neimeth International Pharmaceuticals, 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.

“We cannot finance such long term project as the new plant in  Amawbia with short term funds from banks. That will not be expedient and cost effective,” Azoji said.