Neimeth seeks N5bn from capital market for expansion, upgrade

Neimeth International Pharmaceuticals Plc has approached the capital market to raise N5 billion to support its expansion drive, which includes the construction of a new plant in Anambra state and a facility upgrade of the Oregun plant as approved by its shareholders. The company’s Managing Director, Matthew Azoji, who disclosed this in Lagos, said that […]

Neimeth International Pharmaceuticals Plc has approached the capital market to raise N5 billion to support its expansion drive, which includes the construction of a new plant in Anambra state and a facility upgrade of the Oregun plant as approved by its shareholders.

The company’s Managing Director, Matthew Azoji, who disclosed this in Lagos, said that the new plant would be a multi-product facility that would be tailored to comply with the World Health Organisation’s current standards of Good Manufacturing Practice.

He said, “we are expecting that by the end of next year, the plant will be ready. The new plant which would be in Anawbia, Anambra would be a multi-product facility that will be tailored to comply with the World Health Organization (WHO) current standards of Good Manufacturing Practice (cGMP).”

He added that the rights issue which would commence on August 3, would be used to raise the sum of N3.68 billion at the cost of N1.55 per 50k share.

“We are seeking a total of N5 billion of investors’ funds through a hybrid offer of Rights Issue and Private Placement. We want to raise N3.7 billion and N1.3 billion respectively from both offers,” he said.

According to him, the Oregun factory upgrade is close to completion with funds gotten from the Bank of Industry and its own resources. He added that on completion, “the Oregun plant alone will add an additional 300 per cent to the company’s production capacity especially with liquid preparations.”