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Fidson Healthcare to raise N6bn as turnover slips by N540m

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Fidson Healthcare to raise N6bn as turnover slips by N540m

Fidson Healthcare Plc, on Thursday secured the approval of its shareholders to raise N6 billion new capital to help its operations

This is as the full-year report for the year ended December 31, 2016 indicated that turnover slipped marginally by N540 million from N8.2 billion in 2015 to N7.66 billion in 2016.

Profit before tax however declined by 48 per cent to N443.79 million as against N838.04 million. Profit after tax meanwhile rose from N2.60 billion in 2015 to N2.85 billion in 2016.

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Shareholders voted unanimously on Thursday at the annual general meeting in Lagos in support of the new capital raising. The meeting also increased the authorised share capital of the company, obviously to create new shares for issuance. The meeting 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 authorised the board of directors of Fidson Healthcare to raise further capital of “up to N6 billion through an offer” whether by way of public offering, rights issue, private and special placement. The resolutions also enabled the company to raise more than N6 billion with a provision that allows the directors to absorb oversubscription.

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.

Chairman, Fidson Healthcare Plc, Mr. Felix Ohiwerei, said the new capital would be used to supplement the company’s working capital by way of the company’s new factory, which came on stream late 2016.

According to him, the multi-billion Naira factory needs additional capital to be able to operate at full capacity.

 

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