Ellah Lakes Gets Shareholders’ Approval to Raise N5bn via Private Placement

Kayode Tokede

The shareholders of Ellah Lakes Plc, yesterday approved the management’s decision to raise up to N5  billion by way of private placement.

The fully indigenously owned and diversified Agribusiness company listed on the Nigerian Exchange Limited (NGX) in 2023 had raised N2.9billion from its investors as the company intended to build storage silos, capable of storing up to 100,000MT of Rice, Soybean and Maize.

Speaking to shareholders at the company’s Annual General Meeting (AGM) in Lagos, the Chairman, Ellah Lakes, Mr. Olumide Akpata expressed that, despite challenges, the management is confident that it would emerge stronger to deliver on its long-term growth and profitability strategy.

The Chairman who was represented by Ms Osaro Oyegun, the Chairman, Statutory audit committee, Ellah Lakes stated the company intends to continue to deliver value for its shareholders, in a practical manner through gradual growth.

“However, we do know that the years immediately ahead of us will be considerably more challenging for many businesses due to the insecurity situation, rising inflation, supply disruptions, amongst others,” he said.

He noted that in overcoming challenges, the company received approval of the Securities & Exchange Commission (SEC) for a N2.9 billion rights issue.

According to him, “On the completion of our rights issue, we intend to deleverage the company’s balance sheet as well as position it for its next phase of growth. Whilst we finish completion of the installation of the CPO Mill, we also intend to cultivate soyabean and maize in the very near future. We expect to commence our mill operations in 2024 and to commence planting of soybean within the year.”

According to him, “Similarly, a lot of work has gone into operationalizing the collaboration with the International Institute for Tropical Agriculture (IITA) in Ibadan, and USAID Trade & Investment Hub, on improving industry access to soybean seed across Nigeria, by planting high-yielding (3.5t/ha) soybean seed varieties.

“With regards to security, we are taking all the necessary actions to ensure the safety of our farms and workers to prevent and minimize the risk of crop loss, so that our business continues to grow. We have engaged security personnel to secure our farm and are working with the local community to ensure the safety of our crops and workers.”

The Managing Director / Chief Executive Officer, Ellah Lakes, Mr. Chuka Mordi disclosed to shareholders at the AGM that the N2.9 billion rights issue was completed and successful.

He was grateful to shareholders who bought into the company’s N2.9 billion rights issue, pleading that by the next AGM, shareholders would hear good news