Neimeth International Pharmaceuticals Plc has seen its share price jump by over 45% week-to-date on the Nigerian Exchange following its 66th Annual General Meeting (AGM), where capital-raising and expansion plans were adopted.
At the AGM on Monday, June 23, shareholders approved a plan allowing the company’s directors to raise up to N20 billion by issuing shares, a move aimed at strengthening its capital base.
Shareholders were also told that Neimeth redirected N1.5 billion originally intended for a new plant in Anambra to expand its existing factory in Lagos, with the Chairman noting that updates will be provided as the project progresses.
Also at the meeting, shareholders approved the 2024 audited accounts, which showed that the pre-tax loss dropped from N1.6 billion to N854.4 million, supported by N4.4 billion in revenue from pharmaceutical sales.
- This result set the stage for the company’s Q1 2025 report, which showed a pre-tax profit of N115.7 million, up 49%, as revenue surged by 86%.
Following these developments, Neimeth’s shares rose by 10.00% on Monday, June 23, topping the NGX advancers’ chart. By June 26, the stock had gained over 45%, closing at N5.40 from the week’s open of N3.80.
Market trend
Neimeth’s shares began the year at N2.29 and closed January at N2.65, trading on a volume of 54.4 million shares. The bullish momentum continued into February, lifting the stock above the N3 mark.
- March, however, saw a decline, and the stock remained mostly flat through April.
- In May, it returned to positive territory, and by the first three weeks of June, it had maintained steady gains.
- The rally picked up pace in the fourth week of June, after the company’s Annual General Meeting.
As of the close of trading on June 26, Neimeth shares are up 45.95% for the week, trading at N5.40, with a month-to-date gain of 74%.
Resolutions at AGM
In addition to routine matters such as adopting the 2024 audited financials, appointing and re-electing directors, and setting remuneration, shareholders also approved several key resolutions:
- Directors were authorized to raise up to N20 billion, or any amount they consider appropriate, through the allotment of shares. This may be done via public offering, rights issue, strategic allotment, private placement, or a mix of these methods.
- It was agreed that every Non-Executive Director must hold fully paid-up shares equal to at least 10% of the Company’s share capital, either by their appointment date or within 60 days of the requirement coming into effect.
- The Share Premium Account of the company will be reduced by N2 billion, from N2.38 billion to N377.76 million, with the difference transferred to a Capital Restructuring Reserve Account.
