May and Baker last year obtained approval from its shareholders to raise additional equity capital of N3.2bn for the company through any or a combination of rights issue, private placements and offer for subscription.
However, the company was unable to raise equity and the Chairman as its AGM has explained why. He explained that timing, low market appetite and readiness of members to take their rights.”
“It is my utmost hope that we will be able to bring in equity within the next one year as it is evident that recapitalising the company has become imperative.
“Our finance cost has remained above N600m for the second year running. These would have flowed into profits for shareholders had we operated more on own equity than borrowed funds.
Danjuma, was also delighted that the company’s new pharmaceutical manufacturing plant in Ota, Ogun State had attained the World Health Organisation Good Manufacturing Practice status, stressed that the next target was to have a pharmaceutical finished product pre-qualified by the WHO.
He also said he was optimistic that once the company was recapitalised, it would be in a stronger position to fully leverage its installed capacity and aggressively promote its brands, ultimately delivering better profits.
Shareholders at the event commended the management for the turnaround of its fortunes. They also acknowledged the need for equity capital, but called for improved visibility for the products and better dividends in the future.