By Peter Egwuatu
THE shareholders of Juli lc, last week, endorsed proposed plan by its Board of Directors to raise capital by way of a non-convertible bond.
Speaking at the companyâ€™s Annual General Meeting (AGM), the Chairman said â€œOur companyÂ at this point in time has justification for fresh funds to be used for working capital and branch development to achieve increased turnover, new products to achieve the diversification objective and improved infrastructure.
The shareholders present at the meeting unanimously approved the non convertible bond after the Board of Directors of Juli hadÂ presented various options considered appropriate.
The Board was also empowered to determine the terms, conditions and fix price subject to the approval of the regulatory authorities.Specifically, the company is planning to raise N500m through a non-convertible bond to enhance its operations, and is currently working out the terms and conditions, subject to the approval of the regulatory authorities
.At the AGM, the companyâ€˜s shareholders approved the board of directorâ€˜s proposition that the fund should be raised, and authorised the board to appoint parties that would handle the bond issue, and perform all other things, which in their opinion might be necessarily desirable, expedient or appropriate to effecting the bond. An approval was also given that the authorised share capital of the company be increased from N200million to such level that shall accommodate the amount to be raised as proposed in the resolution.
Addressing shareholders before the resolution was passed, the companyâ€˜s Chairman, Prince Julius Adelusi-Adeluyi, said that the cost of operations had gone up, and the companyâ€˜s working capital had been badly affected.