Neimeth Pharmaceuticals set to raise N3.68bn via rights issue

Adebayo Obajemu

Neimeth International Pharmaceuticals Plc has disclosed plan to float a rights issue of N3.67bn via the Nigerian capital market.

The rights issue which billed to commence in August would be deployed to raise N3,679,618,625 at the cost of N1.55k per 50 Kobo share.

The pharmaceutical giant said Neimeth its shareholders had in March, 2022 at the 63rd annual general meeting, given their nod to 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.

The Chairman of the Board, Dr. Ambrosie Orjiako, said the money was being raised to construct a new multi products facility that would be tailored to comply with the World 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 cost of borrowing or finance costs and fund working capital.