Medicamen has recently won a new long term contract manufacturing contract from a US distributor.
Company has now announced a board meeting on February 26, 2025 to consider a new fund raise.
- The intention is to raise some sort of equity (direct or convertible) by way of Preferential Issue/ Rights Issue/ QIP/ or any other mode as deem fit.
Currently, Company has negligible debt. Besides, it had informed that for the new contract it’s receiving 25% consideration in advance.
Therefore prima facie, there doesn’t seem to be any real need to dilute.
Once the details of the new fund raise are out, one would be a in a better position to understand the real reason for the dilution.