The Board of Directors of Neimeth Pharmaceuticals has revealed plans to raise N5billion in additional equity upon approval by shareholders of the company.
The Company Secretary, Neimeth Pharmaceuticals, Mrs. Florence Onhenekwe said in a statement to The Nigerian Stock Exchange (NSE).
The disclosure is part of the resolutions reached at the Board of Directors meeting of 15th January 2021. At the end of the meeting, it was resolved that the company would raise additional equity to the tune of N5 billion.
In line with this development, 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.
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 finalized.
The fund will help the company’s management 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.
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.
The move has the potential to trigger a sell-off of the company shares on the Nigerian Stock Exchange.