Shareholders approve new capital raising for Ellah Lakes

[Edoman]

Shareholders approve new capital raising for Ellah Lakes
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 August 5, 2019

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Shareholders of Ellah Lakes Plc have approved the increase in authorised share capital of the agricultural company and further authorised the board of the company to raise new capital. The new capital raising will support the diversification of the company’s business.

At the extraordinary general meeting, shareholders passed a resolution increasing the authorised share capital of the company from N1 billion of 2.0 billion ordinary shares of 50 kobo each to N1.5 billion of 3.0 billion ordinary shares of 50 kobo each through the creation of additional 1.0 billion ordinary shares of 50 kobo each.

The meeting also approved resolutions authorising the board of the company “to raise additional capital whether by way of debt, equity, or a mixture of both, or via public offering, private placement or right issue in such tranches, series or proportions and such prices or interest rates, within such maturity periods, at such dates and time and on such terms and conditions as may be determined by the directors, subject to the requisite approval of the relevant regulatory authorities”.

Shareholders also approved appointments of seven non-executive directors including Olumide Akpata, Chijioke Dozie, Hauwa Nuru, Shehu Abubakar, Maxwell Oko, Evans Jakpa and Nnenna Onyewuchi.

Managing Director, Ellah Lakes Plc, Mr. Chuka Mordi, said the approval of the increase in authorised share capital and new capital raising provides the company with the flexibility to enhance its capital structure as it pursues its aggressive growth plan in the medium term.

According to him, the company’s ambitious growth plan requires significant capital investments in the medium term.

He said the approval of new directors would strengthen the company in its quest for growth assuring that the company will deliver value to shareholders.

Ellah Lakes, one of Nigeria’s foremost agriculture businesses with specialty in fish farming, recently acquired Telluria in order to diversify its product offerings in the agribusiness sector. Ellah Lakes was incorporated on July 2, 1980 and was listed on the NSE on January 14, 1993.

The company had last month listed 1.88 billion ordinary shares of 50 kobo each issued to shareholders of Telluria Limited as consideration for 100 per cent acquisition of Telluria. The new shares were listed on the NSE, bringing the new shares at par with the old shares of Ellah Lakes. With the listing, the total issued and fully paid up shares of Ellah Lakes increased from 120 million ordinary shares of 50 kobo each to 2.0 billion ordinary shares of 50 kobo each.

Ellah Lakes had acquired 100 per cent equity stake in Telluria with effect from May 7, 2019. Having complied with all the necessary regulatory requirements, the acquisition was approved by the NSE and Securities and Exchange Commission (SEC).

Ellah Lakes stated that the primary objective of the acquisition was to strengthen its balance sheet, restore customer confidence, provide access to new markets, improve operations and create organisational efficiencies that will drive profitability and increase shareholders’ value.

According to the company, the board of directors and management consider this business combination to be in its best interest as the transaction will help to revitalise management and create access to diversified expertise and financial strength.

The company added that the acquisition would also help to improve administrative and operational efficiencies as well as strengthen its market position by increasing access to new products and markets.