Shareholders okay Neimeth’s N5b recapitalisation plan
Shareholders of Neimeth International Pharmaceuticals Plc have approved a plan to inject fresh capital of N5 billion into its business in Nigeria.
At the Annual General Meeting in Lagos, shareholders of the healthcare giant approved a resolution to raise fresh capital.
The net proceeds of the N5 billion offer will be used to fund an expansion programme involving the construction of a World Health Organisation (WHO) current standards of Good Manufacturing Practice (WHO cGMP) pharmaceutical manufacturing facility at Amawbia, near Awka in Anambra State.
To facilitate the new capital injection, shareholders also approved an increase in the share capital of the company from N1 billion to N2 billion by the creation of two billion ordinary shares of 50 kobo each.
Chairman, Neimeth International Pharmaceuticals, Dr. Ambrosie Orjiako said the recapitalisation plan was part of the larger programme of Neimeth to become an investor’s haven.
He said the project will help shore up Neimeth’s top line and profits, noting that the civil work on the Amawbia plant will soon commence.
He explained that the choice of Amawbia for the new WHO plant is premised on proximity to key markets for the company’s products.
He said the Amawbia plant will be a multi-products plant and will be presented to the World Health Organisation (WHO) for certification in line with her standards of Good Manufacturing Practice (cGMP).
“When this is done, the plant will offer foreign and local contract manufacturing services for drug production, research and development, formulation and validation services among others,” Azoji said.
He added that local and international brand owners will be encouraged to use the facility for manufacturing of their products at the same standards obtainable anywhere in the world.
Reacting at the efforts of the company, a shareholder, Mr. NornahAwoh said Neimeth should continue to drive new businesses in order to increase the top line. Chief Sunny Nwosu, another shareholder and National Coordinator Emeritus, Independent Shareholders Association of Nigeria encouraged Neimeth to go for the WHO certification in order to attract contract manufacturing business.
Another shareholder, Mr. Boniface Okezie, who is also the chairman of Progressive Shareholders Association, praised the Board and management for turning the company around. He commended the company for returning to dividend payment, after over a decade while Mr. Patrick Ajudua a shareholder said the growth of Neimeth’s share price from 40 kobo in September 2019 to N2.57 kobo in June 2020;but later closed at N1.85 by close of business on September 30, 2020 a 363 per cent jump is an indication of the growing confidence of investors in Neimeth stock. High Chief Robert Igwe, another shareholder said the performance of the company and that of its stocks in the market is enough to motivate any investor to take up stocks in the proposed offer when it hits the market.