Neimeth International Pharmaceuticals Plc recently held its 66th Annual General Meeting (AGM), where shareholders approved key resolutions to drive the company’s growth.
The meeting saw shareholders authorize the company’s directors to raise up to N20 billion through share issuance, aimed at strengthening Neimeth’s capital base.
Key Resolutions Approved:
- Capital Raising: Shareholders gave the green light for the company to raise N20 billion or any amount deemed appropriate by the directors through public offerings, rights issues, strategic allotment, private placement, or a combination of these methods.
- Shareholding Requirement: Non-Executive Directors are required to hold fully paid-up shares equal to at least 10% of the company’s share capital within 60 days of the requirement taking effect.
- Share Premium Account Reduction: The Share Premium Account will be reduced by N2 billion, from N2.38 billion to N377.76 million, with the difference transferred to a Capital Restructuring Reserve Account.
Financial Performance:
Neimeth’s financial performance showed improvement, with a pre-tax loss dropping from N1.6 billion to N854.4 million, supported by N4.4 billion in revenue from pharmaceutical sales. The company’s Q1 2025 report also showed a pre-tax profit of N115.7 million, up 49%, as revenue surged by 86%.
Market Reaction:
Following the AGM, Neimeth’s shares rose by 10% on June 23, and by June 26, the stock had gained over 45%, closing at N5.40 from the week’s open of N3.80. This significant gain reflects investors’ confidence in the company’s growth strategy.
Reporting by Chioma Ezike