Wema Bank authorizes rights issue to raise N40bn capital

The Board of Directors of Wema Bank has been authorized to raise capital of up to N40billion by way of a rights issue to the existing shareholders of the Bank by issuing two new shares for every three shares held in the reconstructed capital of the Bank.

This comes after the bank recently completed its share reconstruction exercise.

The authorization was given at an extraordinary general meeting held on the 31st of December 2021. In addition to the raise of additional capital, the Directors have also been authorized to undertake the Rights Issue on dates and terms determined by the Directors themselves.

Also other  resolutions of the meeting include: “the shareholders hereby waive their pre-emptive rights to any unsubscribed shares offered pursuant to the Rights Issue in the event of an under-subscription and hereby authorize the Directors to offer/issue such unsubscribed shares at a price not less than that specified in the Rights Issue Circular, in such manner as they think most beneficial to the Bank.

“That the Directors be and are hereby authorised to approve, sign and/or execute all documents, appoint such professional parties and advisers and to perform all such other acts and do all such other things as may be necessary to give effect to the above resolutions, including without limitation, complying with the directives of any regulatory authorities.

“That following allotment by the Board of Directors of the shares, the shares issued by the Bank pursuant to the Rights Issue or any unsubscribed shares disposed of by the Directors in accordance with Resolution 3 above be listed on the floor of the Nigerian Exchange Limited.

“That all acts carried out by the Directors and/or management of the Bank in connection with the above are hereby approved and ratified.

That the Board of Directors and the Registrars of the Bank be and are hereby authorised to take steps to reflect the adjustments to each shareholder’shareholding and amend the Bank’s register of members and take all actions that are necessary to put the Rights Issue and the foregoing resolutions into effect.

“That the Directors be authorized to perform other acts, take other steps or do all such other things as may be necessary for or incidental to, or as they deem appropriate to giving effect to the spirit and intendments of the above resolutions.”