Neimeth International Pharmaceuticals Plc has disclosed a plan to raise more capital through right issue and private placement to be used for a two-pronged expansion plan, namely the construction of a new plant in Anambra State and a facility upgrade of the Oregun plant.
The company planned to raise about N5 billion through right issues and private placement.
The Rights Issue which will commence on August 3, 2022, will be used to raise the sum of N3,679,618,625 at the cost of N1.55k per 50 Kobo share.
To carry out the Rights Issue, the Company in March 2022, created 2,373,947,500 additional Ordinary Shares which will be allotted at the rate of five new shares for every four shares currently held in the company to existing Shareholders.
What the company is saying
Pharm. Matthew Obi Azoji, Managing Director/CEO, Neimeth speaking to journalists in Lagos disclosed that the Private Placement will commence immediately after the Rights Issue has closed.
- “The company is offering 628,753,036 Ordinary Shares to would-be investors at the price of N2.10. This is expected to generate N1, 320,381.375.60 through this channel.
- “The money is being raised to fund our strategic expansion plans. Last year, at the 62nd Annual General Meeting of the company, our shareholders approved a two-pronged expansion plan, namely the construction of a new plant in Anambra State and a facility upgrade of the Oregun plant.
- “The new plant will be a multi-product facility that will be tailored to comply with the World Health Organization (WHO) current standards of Good Manufacturing Practice (cGMP) at Amawbia in Anambra State.
- “Part of the funds will also 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.
- “The Oregun factory upgrade is already close to completion with funds from the Bank of Industry (BOI) and own resources. On completion, the Oregun plant alone will add additional 300 per cent to the Company’s production capacity especially with liquid preparations.
- “These projects will not only sustain the current upbeat performance of the company but will give us a quantum leap into the league of leading global healthcare commodities producers,” he said.
Azoji noted that the company is pioneering research and development into African home-grown solutions to various diseases. Already; it has many therapeutic formulations that will provide solutions to various human and animal diseases.
- “Neimeth is also partnering with overseas pharmaceutical companies to formulate medicaments for various common ailments on the continent. Currently; it has about 13 different human pharmaceutical lines undergoing registration while about nine veterinary products are underway. About 25 other human pharmaceutical products are scheduled to be submitted to the National Agency for Food and Drug Administration and Control (NAFDAC) for registration soon.
- “Most of these products are expected to be introduced into the market in the current business year, thus expanding the company’s product portfolio,” he added.