Neimeth explains plan to boost expansion with N1.23b rights issue

THE management of Neimeth International Pharmaceuticals Plc has explainedthat the injection ofN1.23 billion from its ongoing rights issue was scheduled toboost its business and deliver higher returns to shareholders and other stakeholders.According to the company, the pharmaceutical sector is undergoing quality evolution with many key players raising the stake, building, expanding or refurbishing plants with a view to achieving the World Health Organisation (WHO) Good Manufacturing Practice (GMP) prequalification.Neimeth is currently making a Rights Issue of 821.577 million shares of 50 koboeach at N1.50 pershare to raise N1.23 billion fromits existing shareholders.The offer, which has Meristem Securities Limited, as issuing house, opened on October 4 and would close on November 10, 2011.The company explained in astatementthat the injection of the fresh funds would translate into greater harvest for all shareholders.The company said: 'One unique value of the proposition is that existing shareholders will maintain their current percentage holding in the company, thereby reducing the element of dilution of shares. The current very attractive dividend yield at 4.76 per cent has further buttressed Neimeth's position of maximising shareholders wealth.'It added: 'Neimeth as part of this evolution, recently bagged two internationally accepted certifications for maintaining enviable track record of quality products: NIS 14001 2004 and NIS 9001: 2008. By these, Neimeth became the first pharmaceutical company to achieve double certification at the same time.'According to the company, it had completed the last phase of its transformation from a company that depended on franchised and licensed products into one relying on its own indigenously developed products and brands.'The long years of investment in research and development have yielded new products and formulation which are set to take prominent positions in the Nigeria and indeed West African pharmaceuticals market. By this feat, the royalties hitherto paid on franchised products will now be conserved forthwith.
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