Neimeth International Pharmaceuticals Plc is set to float a rights issue of N3.67bn through the Nigerian capital market.
The rights issue would be used to raise N3,679,618,625 at the cost of N1.55k per 50 Kobo share.
Neimeth stated that its shareholders had in March, 2022 at the 63rd annual general meeting, approved the creation of 2,373,947,500 additional ordinary shares which would be allotted at the rate of five new shares for every four shares currently held in the company.
The rights issue had opened on Wednesday, August 3, and was scheduled to close on Thursday, August 25. But it was later extended to September 15.
Besides direct subscription to the offer, shareholders of Neimeth also have extended period to trade on their fully or partially renounced shares on the floor of the Nigerian Exchange (NGX) until September 15.
The Chairman of the Board, Dr. Ambrosie Orjiako, said the money was being raised to construct a new multi products facility that would be tailored to comply with the World Health Organization’s current standards of Good Manufacturing Practice at Amawbia in Anambra State.
It is also to 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.