The Nigerian Exchange Regulation Ltd. (NGXRegCo) has approved Neimeth International Pharmaceuticals Plc a two-year extension until 2026 to meet the required free float threshold.
This decision was communicated by the Acting Company Secretary of Neimeth Pharmaceuticals, Ms. Chinenye Adekambi, in a notification submitted to the Nigerian Exchange Ltd. (NGX) on Thursday in Lagos.
Free float refers to the percentage of shares of a publicly quoted company that are not restricted from public trading and are available on the stock exchange market. The free float of a company plays a significant role in providing insights to investors about the stability or volatility of the company’s stocks.
This extension highlights the commitment of NGXRegCo to facilitate a conducive environment for companies to meet regulatory requirements. It also provides Neimeth Pharmaceuticals with additional time to address any challenges and enhance its compliance with the free float threshold.
Investors and stakeholders in the Nigerian capital market will be keenly observing Neimeth Pharmaceuticals’ progress towards achieving the required free float threshold as the company works towards bolstering its market stability and attractiveness.
“This is to enable the company to comply with Nigerian Exchange Ltd. (NGX) free float requirement of 20 per cent issued and fully paid share capital of 20 billion free-float market capitalisation for companies listed on its main board,” According to Adekambi.
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Adekambi stated that it would also help to ensure that the company returns to its post-listing obligations. “This is in line with Rule 3.1.4 of The Exchange’s Rule Governing Free Float requirements.
“The requirement states that the Exchange may suspend trading in the company’s securities if the company does not achieve the required free float within the stipulated timeframe,” she said.
She further noted that the management and board of Neimeth International Pharmaceuticals remain committed to good corporate governance practices.
The company secretary assured that the pharmaceutical would ensure that the free float deficiency of the company is cured within the stipulated timeline given by NGX RegCo, failing which NGX RegCo may suspend trading in its securities.
NAN
