Neimeth inventory features over 45% after shareholders authorize N20bn capital elevate, different plans at AGM
Neimeth Worldwide Prescribed drugs Plc has seen its share value soar by over 45% week-to-date on the Nigerian Change following its 66th Annual Normal Assembly (AGM), the place capital-raising and growth plans had been adopted.
On the AGM on Monday, June 23, shareholders authorised a plan permitting the corporate’s administrators to boost as much as N20 billion by issuing shares, a transfer aimed toward strengthening its capital base.
Shareholders had been additionally instructed that Neimeth redirected N1.5 billion initially supposed for a brand new plant in Anambra to develop its current manufacturing unit in Lagos, with the Chairman noting that updates might be offered because the venture progresses.
Additionally on the assembly, shareholders authorised the 2024 audited accounts, which confirmed that the pre-tax loss dropped from N1.6 billion to N854.4 million, supported by N4.4 billion in income from pharmaceutical gross sales.
- This outcome set the stage for the corporate’s Q1 2025 report, which confirmed a pre-tax revenue of N115.7 million, up 49%, as income surged by 86%.
Following these developments, Neimeth’s shares rose by 10.00% on Monday, June 23, topping the NGX advancers’ chart. By June 26, the inventory had gained over 45%, closing at N5.40 from the week’s open of N3.80.
Market development
Neimeth’s shares started the 12 months at N2.29 and closed January at N2.65, buying and selling on a quantity of 54.4 million shares. The bullish momentum continued into February, lifting the inventory above the N3 mark.
- March, nonetheless, noticed a decline, and the inventory remained largely flat by April.
- In Might, it returned to constructive territory, and by the primary three weeks of June, it had maintained regular features.
- The rally picked up tempo within the fourth week of June, after the corporate’s Annual Normal Assembly.
As of the shut of buying and selling on June 26, Neimeth shares are up 45.95% for the week, buying and selling at N5.40, with a month-to-date achieve of 74%.
Resolutions at AGM
Along with routine issues equivalent to adopting the 2024 audited financials, appointing and re-electing administrators, and setting remuneration, shareholders additionally authorised a number of key resolutions:
- Administrators had been licensed to boost as much as N20 billion, or any quantity they take into account applicable, by the allotment of shares. This can be performed by way of public providing, rights subject, strategic allotment, personal placement, or a mixture of these strategies.
- It was agreed that each Non-Govt Director should maintain totally paid-up shares equal to at the very least 10% of the Firm’s share capital, both by their appointment date or inside 60 days of the requirement coming into impact.
- The Share Premium Account of the corporate might be decreased by N2 billion, from N2.38 billion to N377.76 million, with the distinction transferred to a Capital Restructuring Reserve Account.
