Shareholders of Pharma-Deko has approved the boards proposal to raise fresh equity via a rights issue. See below;
Shareholders of Pharma-Deko Plc have given the company a unanimous approval to raise fresh funds from the capital market. A statement by the company on Thursday, said that the approval was given at its 43rd Annual General Meeting. According to the statement, shareholders said the company could raise the funds by way of rights issue. The Managing Director, Pharma-Deko, Mr. Adekunle Abibu, said the funds would be used to boost its activities and increase its working capital.
He said, “However, we hope with the assurance of our shareholders to turnaround the company; there would be an injection of fresh equity funds by way of rights issue as unanimously passed among the resolutions considered at this meeting.
“We are glad to note that the shareholders have asked that we fast track actions required for this exercise, as they are willing and fully ready to take up their rights, and we know that this would ensure the success of the offer.
“We remain confident that with the funds generated by way of rights issue, the company’s pharmaceutical and consumer plants’ facilities will be upgraded to ensure compliance with international recognised standards.”
On Reason for decrease in turnover
He explained that the decrease in turnover in 2012 was primarily due to the lingering problem of inadequate working capital, commitment to the repayment of the Asset Management Corporation of Nigeria’s debt and other liabilities of the company.
“These factors continuously limit the company’s ability to explore the numerous opportunities in the healthcare and consumer business,” he noted.”
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