Neimeth International Pharmaceuticals Plc has disclosed that NGX Regulation Limited has approved the company’s free float compliance extension request of two years (2024-2026).
This was contained in the company’s notice to the shareholders seen by Nairametrics.
Companies listed on NGX are required to maintain a minimum free float for the set standards under which they are listed to ensure that there is an orderly and liquid market for their securities
The Board of Directors of the company in a statement signed by the Ag. Company Secretary, Chinenye Adekanmbi said the request was to enable the company to comply with NGX’s free float requirement of 20% issued and fully paid share capital or N20 billion free-float market capitalization for companies listed on its main board and to ensure that the bank returns to compliance with its post-listing obligations.
Rules Governing Free Float:
According to the Board, this is in line with Rule 3.1.4 of the Exchange’s Rules of governing free float requirements which states that:
- “The Exchange may suspend trading in the company’s securities if the company does not achieve the required free float within the stipulated timeframe’.
The board said that it remained committed to good corporate governance practices and will ensure that the free float deficiency of the company is cured within the stipulated timeline given by the NGX RegCo, failing which NGX RegCo may suspend trading in its securities.
Neimeth International Pharmaceuticals Plc recently released earnings results for the fourth quarter ended December 31, 2023.
For the fourth quarter, the company reported sales were N770.61 million compared to N946.3 million a year ago.
Net loss stood at N1,935.7 million compared to N180.31 million a year ago.
Basic loss per share from continuing operations was N0.45 compared to N0.09 a year ago.
Nairametrics reported that Neimeth International Pharmaceuticals Plc said that the high cost of doing business in the year, especially concerning foreign exchange for the procurement of input materials and other inflationary pressures, adversely affected its profitability.
The Chairman of the Company, Dr. Ambrosie Orjiako, stated this at the 64th Annual General Meeting o Neimeth held in Lagos.
- “The company made a gross profit of N1.33 billion in 2022. However, the inflationary effects of the operating environment impacted marketing and distribution costs, which went up 30% to N755 million compared to N579 million in 2021, while administrative expenses grew by 52% from N513.9 million to N783 million. Finance costs increased from N188.2 million to N375 million in 2022. Saddled with these costs, the company wrote a loss after tax of N406 million for the 2022 business year,” he said.