BusinessDay

Ellah Lakes gets shareholders’ approval for N2.90bn Rights Issue, others

At the Annual General Meeting of Ellah Lakes Plc held in Lagos on Thursday, December 1, the shareholders authorised among others that the Board of Directors should raise capital of N2.90 billion or such other amount as they may determine by way of a Rights Issue of ordinary shares to its shareholders.

The Rights Issue will be executed at such price, time, period and on such other terms and conditions as the Board of Directors may deem fit.

At the meeting, the Company’s audited financial statements for the year ended July 31, 2022, together with the reports of the Directors, Auditors and Audit Committee were received and accepted.

Among other approvals, the shareholders also authorised the Board of Directors to raise via private placement, or any other equity issuance, any shortfall not raised from the Rights Issue.

They also asked the Board of Directors to apply any convertible loan, shareholder loan or any other monies due to any person, from the Company, as may be agreed by the person and the Company, towards payment for any shares or rights subscribed for in the Rights Issue or Other Equity Issue.

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They also approved for the Board of Directors to sign and/or execute all documents, appoint such professional parties and advisers, as may be necessary to give effect to the above resolutions, including without limitation, complying with the directives of any regulatory authority.

The new shares issued by the Company pursuant to the Rights Issue and Other Equity Issue will be listed on the Nigerian Exchange Limited (NGX).

Furthermore, the shareholders approved for the Board to increase the share capital of the company from N1billion to N1.5billion.

This it will do by the creation of 1billion additional ordinary shares of 50 kobo each, ranking pari passu in all respects with the existing ordinary shares of the Company and that the new shares thus created be allotted pursuant to the Rights Issue and Other Equity Issue and registered with the Securities and Exchange Commission (SEC) and consequently that the Memorandum of Association of the Company be amended accordingly.