Cinpharm seeks 1.2 bn to revive operations

The pharmaceutical industrial company (Cinpharm SA) aims to increase its share capital by 1.278 billion Cfa franc, revelead a statement made public on 12th January 2015 by its CEO, Célestin Tawamba. To do this, noted Mr. Tawamba, a period of subscription to the capital of this industrial company specialized in the manufacture of pharmaceutical products and medical supplies, is open from January 20 to February 27, 2015.

Subscriptions to the 127,800 new shares with a value of 10,000 Cfa francs each, will be issued as part of this increase in the capital by Cinpharm, noted that the press release mentioned, will be "cash and by compensation with certain, liquid and payable claims against the company. "The amount of the capital increase may be limited to the amount of subscriptions made, once collected subscriptions reach 3/4 of the capital increase," said the company.

Subscriptions in cash "will be released at 25% when the subscription and the balance in one or more times, on appeal from the Board of Directors". In relation to the subscription of new shares by offsetting of claims against the company, they must be fully paid at the moment of the subscription.

This appeal for funds by Cinpharm will allow this industrial unit to mobilize part of its working capital needs, estimated at more than 3 billion francs Cfa, revealed Jeune Afrique in October 2013.

Indeed, the financial difficulties facing this company, have forced its leaders to cease activity from May 2013. A decision reached after two years of chaotic activities, at the end of which the accumulated losses amounted to 3.5 billion francs Cfa.