Neimeth Pharmaceuticals to raise N5bn in additional equity
Neimeth Pharmaceuticals has disclosed that the company is set to raise N5billion in additional equity once approved by shareholders at its Annual General Meeting.
The Company’s Secretary, Mrs. Florence Onyenekwe, disclosed this in a notification issued by and published on the website of the Nigerian Stock Exchange.
This, according to her, will serve as part of the resolutions reached at the Board of Directors meeting held, after which, it was resolved that the company would raise additional equity to the tune of N5 billion.
With this outcome, a board resolution proposing to raise equity will be presented at the Annual General Meeting of the Company scheduled to hold on 9th March 2021.
Although the Board of the Company is yet to disclose if the additional equity would be a rights issue or a private placement, as the details of the additional N5 billion equity set to be raised are yet to be concluded.
The company’s management intends to use the fund to execute key strategies that will reposition the company as a leader in the healthcare industry, with the hope to deliver better returns on investment to shareholders, while the additional equity financing will also increase Neimeth’s outstanding shares, which will dilute earnings and impact the Company’s stock value for existing shareholders.
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