Neimeth sets court-ordered meeting, seeks approval for N1.9 billion share transfer

2026-02-27 12:55:08

Neimeth International Pharmaceuticals Plc has announced that it will convene a meeting for its shareholders, following an order from the Federal High Court in Lagos dated 5 February 2026.

The meeting, directed by Honorable Justice Y. Bogoro, will consider and, if deemed appropriate, approve the reduction of the company’s Share Premium Account by N1.9 billion, from N2.37 billion to N390.01 million.

Under the proposed plan, N1.9 billion from shareholders’ equity will move to the Revenue Reserve Account, likely funding dividends, operating expenses, or investments to smoothen the company’s daily operations.

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The court-ordered meeting, required by law to approve this scheme, will be held virtually on 31 March 2026, during which other proposed resolutions will also be considered and, if approved, passed.

What the company is saying

The scheme of arrangement, as outlined in the documents dated 25 February 2026, was submitted to the court, endorsed by the chairman, and will be reviewed at the meeting for shareholders’ consideration.

Accordingly, the company’s directors are authorized to approve any modifications required by the Securities and Exchange Commission or the court to ensure the scheme is implemented effectively.
For its execution, the company’s solicitors have been directed to obtain all approvals and orders necessary to give full effect to the scheme, including any incidental or supplemental resolutions.

The board is fully empowered to take all steps it deems necessary to ensure the scheme and related resolutions are properly executed.

This aligns with the company’s recent announcement to raise N20 billion in capital to support its expansion plans.

Get up to speed

On 18 February 2026, Nairametrics reported that Neimeth plans to raise N20 billion through the capital market, a move approved by shareholders to help the company grow.

Managing Director and CEO Pharm. Valentine Okelu shared this during the company’s 2026 media briefing, explaining why the capital raise is important for the business.
According to him, the money will be used to improve operations, pay off some debts, and help the company grow steadily across African markets.

It will also help fix the balance sheet after previous debt restructuring temporarily increased costs, giving the company a stronger financial position.

Okelu said the funds will complete expansion projects, improve working capital, lower financing costs, increase production capacity, and keep the company on track for higher earnings.

What you should know

Neimeth International Pharmaceuticals Plc posted an unaudited pre-tax profit of N1.48 billion for the year ended 31 December 2025, marking a strong turnaround from a pre-tax loss of N854.43 million in 2024.

Revenue rose 64%, driven mainly by the pharmaceutical segment, which contributed N7.18 billion of the total N7.36 billion revenue.
Total assets increased 25% to N14.93 billion, supported by higher investment properties and inventory levels.

The company restructured some of its loans, raising N6.7 billion in new financing while repaying N2.2 billion, strengthening its financing structure and boosting operational liquidity.

Year-to-date in 2026, Neimeth’s stock has surged over 116%, currently priced at N11.55 mid-trading on the 27th of February.

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