eTranzact Seeks Fresh N7b to Remain Competitive

By Modupe Gbadeyanka

The board of eTranzact International Plc is proposing the raising of fresh funds up to N7 billion to inject into the company for expansion and profitability.

The firm explained that the amount would be used to “expand its operations, deepen its market share and remain competitive in the financial technology industry.”

Most of the N7 billion to be sourced for by the company would be specifically used to procure state of the art infrastructure and enhanced network security systems, which the firm said are its “critical needs.”

“The funding will be used to upgrade and enhance the company’s technology infrastructure and network security systems and also to improve on its service delivery among other lawful purpose(s).

“The company will also invest in its Agent Network Expansion Program, Human Resources and Employee Development. This will help to ensure that the company retains the best skill set available, achieve a fast response rate, reduce downtime, and expands its service offerings and market reach,” eTranzact said.

As a result, the board is calling for extraordinary general meeting to be held at Colonades Hotel, Lagos, on Thursday, January 17, 2019, at 12:00 noon to consider and approve the capital raising.

During the meeting, shareholders will give the board an approval to raise the funds “whether by way of public offering, private placement, rights issue, offer for subscription or other methods they deem fit, with or without preferential allotments, either locally or internationally, at such dates and on such terms and conditions as shall be determined by the directors.”

Also at the January 2019 EGM, the shareholders will authorise the board to increase of the company’s authorised share capital from N2.1 billion divided into 4.2 billion ordinary shares of 50 kobo each to N9.1 billion divided into 18.2 billion ordinary shares of 50 kobo each by the creation of additional 14 billion ordinary shares of 50 kobo each, with such new shares ranking pari passu in all respects with the existing ordinary shares of eTranzact.