By Dipo Olowookere
The board of Ellah Lakes has been given the approval to raise fresh N5 billion through a private placement or any other means they settle for.
The authorisation was given by the company’s shareholders at its Annual General Meeting (AGM) held on Tuesday, January 16, 2024, in Lagos.
A private placement involves the sale of shares to an investor at an agreed price, usually more than its listed price. It is used to raise funds for the company.
At the AGM, the board informed the company’s shareholders that N5 billion would be needed to shore up its capital and deliver more value to them.
Convinced by the benefits of the new fundraising, the shareholders gave the board the go-ahead to issue the shares to the new investor who may be interested in the deal.
Updating the investing community, Ellah Lakes, in a statement to the Nigerian Exchange (NGX) Limited on Thursday, said participants of the yearly gathering resolved to allow the board to “raise up to the sum of N5 billion by way of private placement, or any other equity issuance on such terms as may be approved by the board subject to obtaining all relevant regulatory approvals.”
Recall that in September 2023, Ellah Lakes secured approval from the Securities and Exchange Commission (SEC) to raise N2.90 billion.
