By Peter Egwuatu

The Board of Directors of Neimeth International Pharmaceuticals Plc has concluded arrangement to float a Rights Issue of N3.67 billion for the Company through the Nigerian capital market. 

The Board and parties to the Issue on Wednesday approved the fund raising at a Completion Board Meeting in Lagos.

The Rights Issue which will commence August 3, 2022 is priced at N1.55k per 50 kobo share.

Chairman of the Board, Dr. Ambrosie Orjiako, said the money is being raised to construct a new multi products facility that will be tailored to comply with the World Health Organization (WHO)  current standards of Good Manufacturing Practice (GMP)  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. In his remark, Managing Director/CEO, Pharm Matthew Azoji, said: “We cannot finance such long term project as the new plant in Amawbia with short term funds from banks. That will not be expedient and cost effective.”