Ellah Lakes’ shareholders give approval for N5bn raise

Chuka Mordi -Ellah Lakes Chief Executive Officer

THE board of Ellah Lakes has been given the approval to raise fresh N5 billion through a private placement or any other means they settle for.

Shareholders of Ellah Lakes, a player in the agricultural sector, have approved N5 billion to be raised as an equity issue.

The company in a statement said the “Board of Directors is hereby authorized to raise up to N5 billion through a private placement or alternative equity offering, subject to the Board’s discretion and any necessary regulatory approvals,” OsaroOyegun, one of the board of directors representing the chairman, said.

A private placement is a sale of stock shares or bonds to pre-selected investors and institutions rather than publicly on the open market.

At the AGM, the board informed the company’s shareholders that N5 billion would be needed to shore up its capital and deliver more value to them.

Convinced by the benefits of the new fundraising, the shareholders gave the board the go-ahead to issue the shares to the new investor who may be interested in the deal.

It added that the right of issue raised in October last year was completed successfully.

“We have been through many hard times and we’ve been trying to bring it alive and it looks like we are finally scaling through. The CPO is undergoing completion and will be up by the second quarter of 2024,” Chuka Mordi, Chief Executive Officer of Ellah Lakes said.

The statement also noted that it executed a Memorandum of Understanding with the Enugu State Government as a 5,000-hectare farm at Adani in Enugu, has been concessioned to the company, with a lease period of 35 years.

The company also purchased a three-tonne-per-hour CPO mill. The plant is to be installed at the farm in Iguelaba, Edo State.

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