Matthew Azodi, Managing Director/ Chief Executive Officer, Neimeth Pharmaceuticals Plc, has said the company is committed to its strategic expansion plans through its capital raise.
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's 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.”
According to him, the company is seeking a total of N5 billion investors’ funds through a hybrid offer of rights issue and private placement, adding that it plans to raise N3.7 billion and N1.3 billion 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.
Azoji also revealed that the company had sought the intervention of the Nigerian capital market to raise funds in order to realise its vision and strategic goals.
He said the rights issue would be used to raise N3.67 billion at the cost of N1.55k per 50 kobo share.