SEC Approves Ellah Lakes’ N2.90bn Rights Issue

By Dipo Olowookere

Ellah Lakes Plc can now go ahead with its plans to raise fresh capital through a rights issue to shareholders, the Securities and Exchange Commission (SEC) has declared.

In 2022, shareholders of the company authorised the board to source about N2.90 billion. The board later filed an application to the SEC to carry out the transaction.

In an update on Wednesday, Ellah Lakes informed the investing community that the apex regulatory agency for the country’s capital market had approved its request.

The firm, which operates in the agricultural sector, intends to get N2.90 billion from shareholders from one billion shares to be sold at N2.90 per unit to them.

These stocks would be issued to investors who have the company’s equities as of February 10, 2023, on the basis of one new for every two held.

According to the notice filed to the Nigerian Exchange (NGX) Limited yesterday, the exercise should commence on Monday, October 9, 2023, and should end 27 days later.

“Ellah Lakes Plc is pleased to notify its esteemed shareholders, stakeholders, Nigerian Exchange (NGX) Limited and the general public that the company has obtained approval from the Securities Exchange Commission (SEC) to conduct the signing ceremony with regard 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 new ordinary share for every two ordinary shares held. The qualification date for the rights issue is February 10, 2023.

“Subject to the approval of the executed offer documents by the SEC, the application list is expected to open on October 9, 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 disclosure stated.