THE Nigerian Exchange Regulation Ltd, the regulatory arm of the Nigerian Exchange Group, has approved a two-year extension (2024-2026) for Neimeth International Pharmaceuticals Plc and UPDC Plc’s free float compliance.
In a separate notification sent to the Nigerian Exchange Limited (NGX) by the pharmaceutical company’s Acting Secretary, Chinenye Adekambi and UPDC Company Secretary, Fluke Kalaro.
In the notification, Adekambi stated that this is being done to help the company meet the free-float market capitalization criterion set by Nigerian Exchange for companies listed on its main board, which is 20 percent of issued and fully paid share capital of $20 billion.
She explained that it would also aid in ensuring that the pharmaceutical company fulfils its post-listing expectations, adding that, this complies with the Exchange’s Rule Governing Free Float requirements, Rule 3.1.4.
“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.
“The management and board of Neimeth International Pharmaceuticals remain committed to good corporate governance practices,” Adekambi said.
The pharmaceutical company’s acting secretary gave an assurance that should the free float deficit not be rectified within the allotted time frame set by NGX RegCo, trading in the company’s securities may be suspended by NGX RegCo.
UPDC Company Secretary, Fluke Kalaro noted that this is in line with Rule 3.1.4 of The Exchange’s Rules Governing Free Float Requirements, which 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”.
“The Board and majority shareholders of the Company remain committed to good corporate governance practices and will 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,” the company noted in the statement signed by Folake Kalaro, Company Secretary.
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