Neimeth inventory positive aspects over 45% after shareholders authorize N20bn capital elevate, different plans at AGM 

Neimeth Worldwide Prescription drugs Plc has seen its share worth soar by over 45% week-to-date on the Nigerian Alternate following its 66th Annual Basic Assembly (AGM), the place capital-raising and enlargement plans have been adopted.

On the AGM on Monday, June 23, shareholders accepted a plan permitting the corporate’s administrators to lift as much as N20 billion by issuing shares, a transfer aimed toward strengthening its capital base.

Shareholders have been additionally informed that Neimeth redirected N1.5 billion initially meant for a brand new plant in Anambra to increase its current manufacturing facility in Lagos, with the Chairman noting that updates will probably be offered because the undertaking progresses.

Additionally on the assembly, shareholders accepted 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 consequence 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 pattern 

Neimeth’s shares started the yr 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, nevertheless, noticed a decline, and the inventory remained largely flat by means of April.
• In Might, it returned to optimistic territory, and by the primary three weeks of June, it had maintained regular positive aspects.
• The rally picked up tempo within the fourth week of June, after the corporate’s Annual Basic 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 acquire of 74%.

Resolutions at AGM 

Along with routine issues reminiscent of adopting the 2024 audited financials, appointing and re-electing administrators, and setting remuneration, shareholders additionally accepted a number of key resolutions:

• Administrators have been licensed to lift as much as N20 billion, or any quantity they think about applicable, by means of the allotment of shares. This can be finished by way of public providing, rights situation, strategic allotment, non-public placement, or a mixture of these strategies.
• It was agreed that each Non-Government Director should maintain absolutely paid-up shares equal to at the 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 will probably be diminished by N2 billion, from N2.38 billion to N377.76 million, with the distinction transferred to a Capital Restructuring Reserve Account.