A major brand in Nigeria’s pharmaceutical industry, Fidson Healthcare Plc, is to raise N6 billion new capital to reposition itself.
The fresh capital is to be realised through public offering, rights issue, private and special placement.
Shareholders, who approved the initiative at the company’s Annual General Meeting in Lagos, also increased the authorised share capital of the company from N1.2 billion to N1.5 billion by the creation of additional 600 million shares of 50 kobo each.
Shareholders also authorised the Board to convert existing loans due to any person from the company towards payment for any rights or shares subscribed for.
According to the company’s Chairman, Mr. Felix Ohiwerei, the new capital will be used to supplement the company’s working capital by way of the company’s new factory, which came on stream late 2016.
Ohiwerei said the multi-billion naira factory needs additional capital to be able to operate at full capacity
The full-year report for the year which ended December 31, 2016 indicates that the company’s turnover slipped marginally by N540 million from N8.2 billion in 2015 to N7.66 billion in 2016.
Profit before tax however dropped by 48 per cent to N443.79 million as against N838.04 million, while profit after tax increases from N2.60 billion in 2015 to N2.85 billion in 2016.