Neimeth Plans N3.7bn Rights Issue, N1.3bn Private Placement
By Dipo Olowookere
The board of Neimeth International Pharmaceuticals Plc has decided to raise N5 billion from two sources; rights issue and private placement.
This decision was reached on Monday, May 31, 2021, at the emergency meeting of the board to discuss the modalities for raising the N5 billion approved by shareholders of the company almost three months ago.
On March 9, 2021, at the Annual General Meeting (AGM) of the organisation, the shareholders of the pharmaceutical company authorised the board to source N5 billion.
At Monday’s gathering, the board concluded that the sum of N3.7 billion should be raised from the rights issue, while N1.3 billion should come from the private placement.
According to a disclosure from the firm, the company will offer investors a total of 2,373,947,500 stocks at a unit price of N1.55, while the 628,753,036 stocks to be sold via private placement would be at a unit price of N2.10.
“This is to notify the Nigerian Exchange Limited and the investing public that at the emergency board of directors meeting of Neimeth International Pharmaceuticals held on May 31, 2021, the board resolved that subject to relevant regulatory approvals, the capital raise of N5 billion approved by shareholders at the last AGM of the company held on March 9, 2021, be structured as follows;
“That N3,679,618,625.00 be raised via a rights issue of 2,373,947,500 ordinary shares at N1.55 per share. The rights issue will be on the basis of 5 new shares for every 4 shares held.
“That N1,320,381,375.60 be raised via special/private placement of 628,753,036 ordinary shares at N2.10 per share.
“The board also resolved that the issued share capital of the company be increased from N1 billion to N2.5 billion by creating additional 2,901,858,536 units of ordinary shares of 50 kobo per share to accommodate the capital raise,” the notice signed by the company secretary, Mrs Florence Onyenekwe said.
Business Post reports that on Wednesday, the shares of Neimeth closed flat at N1.72 at the stock exchange.