Chams to Raise N500m Rights Issue, Convert Loans to Equity

By Dipo Olowookere

Shareholders of Chams Plc have authorised the board of the company to raise N500 million from rights issue.

This approval was given by the investors at the organisation’s Annual General Meeting (AGM) held on Thursday, July 16, 2020, at the Function Room of the Muson Centre, Onikan, Lagos.

During the meeting, the board asked the shareholders to approve the exercise, which is aimed to support the recapitalisation of the company.

When the matter was tabled before the investors, the board was authorised to “raise capital of N500 million by way of a rights issue of ordinary shares to its shareholders and that the rights issue be executed at such price, time, for such period and on such other terms and conditions as the [board of] directors may deem fit.”

Also, Chams further said the shareholders approved that shares should be issued “below per value of 50 kobo at a discount not exceeding 50 per cent below par value for the purpose of due consideration of the price of the company’s shares on the floor of the Nigerian Stock Exchange.”

In addition, the company was allowed to “convert any convertible loan stocks raised to equity by way of debt-equity conversion or through any of the mode of equity issuances approved herein upon such terms and conditions as agreed in the loan conversion agreement.”

Chams Plc, according to its profile on the company’s website, is Nigeria’s leading provider of integrated identity management and identity and payments transactional systems and solutions provider.

Over the last three decades, it has evolved from computer and hardware maintenance to providing enterprise technology solutions in the identity management and transaction payments space to public and private sector institutions.

Business Post reports that the firm, which has notable Nigerians like Pastor Ituah Ighodalo, Professor Oyewusi Ibidapo-Obe and others on its board, has its share price selling at the stock exchange at 22 kobo per unit.

For the past seven consecutive trading sessions, shares of Chams have remained flat at 22 kobo each at the Nigerian Stock Exchange (NSE) despite a significant trading volume.

A total of 3,173,531 units of the company’s stocks have exchanged hands in the last seven trading days.