August 26, 2019

Ellah Lakes shareholders approve fresh capital raise

Residents of Okobaba protest demolition of their properties, demand compensation

By Nkiruka Nnorom

SHAREHOLDERS of Ellah Lakes Plc have approved the plan by the company to raise additional capital to pursue its growth plan. They gave the approval at the company’s Extra-Ordinary General Meeting, EGM, in Lagos.

The shareholders also approved the plan by the company to increase its authorised share capital to N1.5 billion from N1 billion through the creation and addition of one billion ordinary shares of 50 Kobo each. Also approved was the appointment of seven new non-executive directors, namely: Olumide Akpata, Chijioke Dozie, Hauwa Nuru, Shehu Abubakar, Maxwell Oko, Evans Gbubemi Jakpa and Nnenna Onyewuchi to the company’s Board.

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Addressing shareholders at the EGM, Chuka Mordi, chief executive officer, Ellah Lakes, explained that the additional capital would be raised either through debt or equity or a combination of both.

According to him, the proposed fresh capital injection is in line with the company’s ambitious growth plan, which requires significant capital investments in the medium term.

Mordi said: “As we mentioned during our Facts behind Listing of 1.88 billion ordinary shares in June 2019, we would be seeking to raise additional capital for the company and now we have received approval from our shareholders to increase our authorised share capital to N1.5 billion. This provides us with the flexibility to enhance our capital structure, while we pursue our aggressive growth plan in the medium term and ensure we deliver value to our shareholders.”