THE Managing Director/ Chief Executive Officer, Neimeth Pharmaceuticals Plc, Matthew Azodi, says the company is committed to its strategic expansion plans through its capital raise.
Speaking during a press briefing, he said the fund was being raised to fund its expansion plans.
A statement quoted Azodi as saying, “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 Organisation current standards of Good Manufacturing Practice 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.”
He said the company was seeking a total of N5bn investors’ funds through a hybrid offer of rights issue and private placement, adding that it plans to raise N3.7bn and N1.3bn respectively from both offers.
“As you are well aware, the shareholders approved that the capital market is one of the most viable and cost-effective long-term funds because of the high cost of funds through other sources, such as debt,” he added.
According to Azoji, the company has approached the Nigerian capital market to raise funds in order to realise its vision and strategic goals.
According to him, the rights issue will be used to raise N3.67bn at the cost of N1.55k per 50 kobo share.
The statement noted that to carry out the rights Issue, the company, in March 2022, created 2,373,947,500 additional ordinary shares, which would be allotted at the rate of five new shares for every four currently held in the company to existing shareholders.
