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Business News of Friday, 6 March 2020

Source: www.mynigeria.com

Notore to raise share capital to N1.5 billion

Notore Chemical Industries on Stock Exchange Notore Chemical Industries on Stock Exchange

The management of Notore Chemical Industries has completed plans to raise the share capital of the agro-allied firm from N1 billion to N1.5 billion as it seeks approval of the shareholders.

The company made this disclosure in a notification to the Nigerian Stock Exchange, where it announced its forthcoming Annual General Meeting, scheduled to hold on Thursday, March 26, 2020.

Notore Chemical Industries may use the raised capital to acquire assets, make a take-over, repay debts or save itself from bankruptcy. Although a company can raise capital in other ways, such as borrowing from banks or issuing bonds, there can be times when the companies may be reluctant to seek credits from banks because of the high-interest rate incurred by loans.

The agenda read, “That the company hereby authorizes the increase in the Authorized Share Capital of the Company from the sum of One Billion Naira (N1,000,000,000) to the sum of One Billion, Five Hundred Million Naira (N1,500,000,000) by the creation and addition thereto of One Billion (N1,000,000,000) ordinary shares of Fifty Kobo (N0.50K) each, such shares to rank pari-pasu in all respects with the existing shares in the capital of the Company.”

It also instructed the company secretary to do everything necessary for it to arrive at the resolution which included filing the requisite forms at the Corporate Affairs Commission.

Recall that in January 2020, it obtained a loan of N13.3 billion from the African Export-Import Bank to conduct a turn around maintenance (TAM) of its fertilizer plant.

Notore is one of the leading premier fertiliser plants in Sub-Saharan Africa with a plant strategically located at Onne seaport in the Niger Delta region of Nigeria.