SEC Approves Ellah Lakes’s N2.9bn Rights Issue Amid N1.01bn Loss in 2022FY

Kayode Tokede

Ellah Lakes Plc, yesterday announced that the Securities and Exchange Commission (SEC) has granted approval to its proposed N2.9 billion via rights issue exercise.

The company in a notice on the Nigerian Exchange Limited (NGX) said it got approval to conduct the signing ceremony with regards to the proposed rights issue of 1,000,000,000 ordinary shares of 50 kobo each at N2.90 per share, on the basis of one (1) new ordinary share for every two (2) ordinary shares held.

OAKE Legal/ Company Secretary, Ellah Lakes, Olumoroti Alli in a signed statement said, “The right issue is subject to the approval of the executed offer documents by the SEC, the application list is expected to open on the 9th of October 2023, or any other date approved by the Commission and shall open for a maximum period of 28 days.

“Rights circular will be distributed to shareholders while application forms will also be made available on the website of the company’s Registrars for ease of access.

“Esteemed shareholders are advised to contact their stockbrokers and other financial advisers for more details of the offer,” the statement added.

The proposed rights issue is coming on the backdrop of the company’s N1.01billion loss in consolidated audited financial statements for the 12 months ended Iuly 31, 2022 from N563.3million loss reported in 2021 unaudited financial statements.

The crop production company on the mainboard of NGX since 2018 has failed to declare revenue and sustained losses as shareholders’ return diminished.  

Despite the management’s failure to declare revenue, the Group operating expenses stood at N444.13million in 2022 financial year an increase of 35.5 per cent from N327.72million reported in 2021 financial year.

Finance cost increased to N568.59million in 2022, representing an increase of 147.3perr cent from N229.9million reported in 2021.

The stock price of Ellah Lakes closed yesterday at N3.96 per share and it has reached N4.75 and N 3.19 per share 52- week high and 52- week low this year, respectively.