Ellah Lakes receives SEC approval to raise N2.9bn via rights issue

Ellah Lakes Plc, has announced that it has received approval from the Securities Exchange Commission (SEC) to proceed with its planned N2.9billion rights issue.

The company issued a statement to notify its shareholders and stakeholders of this significant development.

In a statement signed by Chuka Mordi, MD/CEO of Ellah Lakes, on Wednesday, said the “proposed Rights Issue involves the issuance of 1,000,000,000 Ordinary Shares of 50 Kobo each at the price of N2.90 per share.”

Mordi said that the company’s “shareholders will have the opportunity to acquire one new ordinary share for every two ordinary shares they currently hold. The Qualification Date for the Rights Issue has been set for the 10th of February 2023.”

It added that, pending the approval of the executed offer documents by the SEC, the application list is scheduled to open on October 9, 2023. However, this date may be subject to alteration if approved by the Commission, and it will remain open for a maximum period of 28 days.

To ensure accessibility and convenience for shareholders, the company said that it will distribute Rights circulars providing detailed information about the Rights Issue. Additionally, application forms will be made available on the company’s registrar’s website.

The company said that it is encouraging its esteemed shareholders to reach out to their respective stockbrokers and financial advisors for further information and guidance regarding this Rights Issue.

This development marks an important step for Ellah Lakes Plc, as it seeks to strengthen its financial position and pursue its growth objectives in the agricultural sector.