Penny Stock Below Rs 10 Okays $25 Million Fundraising Via FCCBs After 3:1 Bonus Share Allotment

Remedium Lifecare Ltd. (formerly known as Roxy Exports Limited) a BSE-listed company has announced that the Board of Directors at their meeting held on 04th September 2024, has approved raising of funds through the issue of eligible securities.

The Board has approved "Raising of funds by the Company up to 25 million USD through issue of eligible securities by way of Foreign Currency Convertible Bonds ("FCCBs"), private placement, rights issue, preferential issue, Follow-on public offering ("FPO"), Qualified Institutions Placement ("QIP"), Global Depository Receipts ("GDR"), American Depository Receipts ("ADR"), or through any other permissible mode or a combination thereof, as may be considered appropriate, subject to shareholders' approval as applicable and applicable regulatory/statutory approvals and requirements. The Board also recommended shareholders approval through postal ballot to approve raising of funds by one or more of the above methods," said Remedium Lifecare in a regulatory filing on Wednesday.

The fundraising deal was approved by Remedium Lifecare after the allotment of bonus shares to eligible shareholders around 2 months back. In a ratio of 3:1, the company had declared a bonus issue for which the record date was 6th July 2024.

Financially speaking, Remedium Lifecare's net profit plunged by 68.76%, from Rs 5.25 crore in the quarter that ended in June 2023 to Rs 1.64 crore in the quarter that concluded in June 2024. Sales decreased 76.49% from Rs 330.46 crore in Q1FY24 to Rs 77.70 crore in Q1FY25. Since the board of Remedium Lifecare announced in July that the firm will raise capital to Rs 200 crore through the QIP, the share price of the company has been rising.

In order to obtain the technology essential to manufacture lithium carbonate in India, Remedium Lifecare recently entered into a strategic agreement with Angel Partners, Ltd., UK, which is in force from July 29, 2024. On the same day, it also inked an annual supply agreement with Alfa Chemicals and Solvents Ltd., Turkey. Technical-grade lithium carbonate will be supplied starting in the quarter ending in January 2025. Remedium Lifecare stated that the supplies for CY 2025 are estimated to be around $20-25 million.

Remedium, which trades in several raw materials utilised in API trading as well as API intermediates (KSMs & CRMs). Specifically, the pharmaceutical and healthcare industries are involved in amino isophthalic acid, tellurium (IV) oxide, grignard reagent, iodine, selenium metal powder, and trimethyl sulfoxonium iodide (TMSI). Remedium provides one of the most extensive ranges of intermediates and APIs, both domestically and internationally.

On Tuesday, the shares of Remedium Lifecare ended on the BSE by 1.85% lower at Rs 9.53 apiece with a market cap of Rs 384.25 Cr. The scrip touched a 52-week-high of Rs 40.00 on (05/09/2023) and a 52-week-low of Rs 8.37 on (20/08/2024).