The shareholders of e-Tranzact International Plc have approved the company’s decision to raise fresh/additional capital to the tune of N7 billion.
The approval was granted during the company’s Extraordinary General Meeting (EGM) which took place in Lagos last Thursday, January 17th.
The company’s board Chairman, Mr Wole Abegunde, presented the capital raise to the shareholders during the meeting. According to him, it has become necessary to raise e-Tranzact’s authorised share capital at this time, especially considering the company’s expansion plans.
The company has also been making plans to increase its market share in order to better position itself for competitive advantage.
To this end, the fresh capital that is about to be raised will be used to facilitate the upgrade the ICT company’s technology and other security infrastructure. e-Tranzact will also invest part of the money into its Human Resources Unit as well as its Agent Network Expansion Programme.
The company’s Chief Executive Officer also commented on the development
Speaking to journalists on the sidelines of the EGM, the e-Tranzact’s CEO, Mr Niyi Toluwape, affirmed that a capital raise will help “the company’s management to strategically maintain the company leading position as a key market leader within the electronic payment industry.”
This is because the money would be deployed into the acquisition of latest technology and hiring of seasoned professionals who would bring about efficiency in the company’s operations.
As we reported, the company hinted at this capital raise back in December when it issued a notice to the Nigerian Stock Exchange announcing the EGM. The company later sent an explanatory note on the proposed capital raise to the NSE.
This capital raise brings the company’s share capital to N9.1 billion
Meanwhile, this latest capital raise of N7 billion would help increase e-Tranzact Plc’s authorised shared capital from N2.1 billion to N9.1 billion.
You may well know that Authorized share capital stands the amount shares that a company’s memorandum of association permits it to issue.
A brief overview of the company
e-Tranzact International Plc is a Nigerian ICT company which was incorporated in 2003 and listed on the NSE in 2009. The company currently has a market capitalisation of N14,952,000,000.00.
The company’s aunaudited financial statemented for the third quarter period ended September 30th 2018 shows that revenue N12.8 billion, up from N8.6 billion during the same period in 2017.
The company, however, recorded a loss after tax of N705.8 million during the Q3 2018 period, compared to a profit after tax of N178 million in Q3 2017.
The company’s share price stood at N3.56 as at its last trading session on the Nigerian Stock Exchange.
The five-ingredient of a successful startup pitch
Every great pitch has these 5 ingredients to help you maximize your chances when fundraising for your startup.
Startups typically prepare a pitch deck to present to potential investors for funding. A pitch deck is a brief presentation that provides investors with an overview of your business. It typically focuses on showcasing your product and business model. An excellent pitch is highly essential to the success of a startup seeking funding from investors.
According to Romeen Sheeth, an angel investor who heard 200 companies pitch and invested over $1million last year, every great pitch has these 5 ingredients to help you maximize your chances when fundraising.
- Problem: Is this an issue?
- Solution: Do you have the fix?
- Market: Is this a big enough issue?
- Business: Can you make money
- Team: Do you have the human resources to do it?
The best pitches nail all 5. Good ones hit 4. Subpar hit 3 or less.
The problem statement is an explanation of why a set of circumstances is painful for a set of users. There’s one word in that sentence that is most important: painful. If your problem is not painful enough, it’s a vitamin. The best startups are pain killers.
The solution statement is an explanation of how you address the pain felt by your users. If you don’t have the right solution, you won’t get customer traction. Customers don’t buy your thesis on the pain point. They buy the actual thing that solves their pain point.
In tech, only businesses that have outsized potential get funded. To have outsized potential, you have to either be in a: (a) small, but rapidly growing market or (b) large existing market that can be resegmented. If not, the business is not venture backable.
The business model defines how you print cash. What is the key insight you’ve figured out that other people haven’t? You don’t need to reinvent the wheel on everything to be a compelling business. Just explain the secret sauce that helps you capture the value.
Everything else is academic if you can’t execute. Ultimately the investor is betting on your team’s ability to bring out the reality in the insights around the problem, solution, market, and business. Communicate why you are the best in the world to build the business.
Once you feel good about these 5, think through the connection points. Every topic that comes up in the conversation will be a function of a connection point. For example:
- Problem-Market = Industry Dynamics
- Solution-Market = Competition
- Market-Business = Unit Economics
When you pitch, always keep it simple. Understand the 5 core ingredients, think through how they relate to one another, communicate with clarity, and don’t assume investors understand your business.
FG explains why Lagos-Ibadan rail line was not linked to the sea
The government in its explanation said that the delay was due to disruption by trucks going in and out of the port complex.
The Federal Government has stated why the China Civil Engineering Construction Company (CCECC) Nigeria Limited could not link the final part of the Lagos-Ibadan rail line to the sea.
The government in its explanation said that it was due to disruption by trucks going in and out of the port complex.
According to a press statement signed by the Director, Press and Public Relations of the Federal Ministry of Transportation, Eric Ojiekwe, this disclosure was made by the Minister of Transportation, Rotimi Amaechi, while on a routine tour of the Lagos-Ibadan rail line project on Saturday, April 10, 2021.
The Minister pointed out that the original blueprint for the Lagos-Ibadan rail line project was not adhered to by CCECC Nigeria Limited and TEAM consortium and therefore warned that the master plan of the soon to commence Ibadan-Kano rail line project should not be changed.
The statement from the ministry partly reads, “The Nigerian Government has restated its commitment to connect the whole country by rail with the soon to commence Ibadan-Kano Standard Gauge Rail project.”
Amaechi forewarned that the master plan of the soon to commence project should not be changed as the original blueprint for the Lagos-Ibadan wasn’t adhered to by Messrs CCECC Nigeria and TEAM consortium. The Minister who rode the train from Ebute-Meta to the 8.72 km Apapa Port Spur line, informed the media that the inability of Messrs CCECC Nigeria to link the final part of the rail line down to the sea is rather due to disruption by trucks going in and out of the port complex.’’
The Minister had noted that the Federal Government has paid its share of the counterpart funding of the Ibadan-Kano rail line project and is waiting for China-Exim bank to ratify its side of the agreement for the project to commence.
He also advised the Nigerian Railway Corporation (NRC) to acquire more land around the train stations and the rail tracks for future development adding that this will be near impossible to do in the future as whatever space available now would have been taken over by businesses attracted to the rail line.
In case you missed it
It can be recalled that full commercial train services commenced on the Lagos-Ibadan rail line after train operations commenced on December 7, 2020, with only Lagos, Ibadan and Abeokuta residents enjoying the train services.
This is because other minor and major stations along that route were yet to be completed.
IBADAN-KANO RAIL PROJECT TO COMMENCE SOON – FG
The @NigerianGov has restated its commitment to connect the whole country by rail with the soon to commence Ibadan-Kano Standard Gauge Rail project.
The Minister of Transportation, @ChibuikeAmaechi, while on routine tour of the
— Federal Ministry of Transportation (@MinTransportNG) April 11, 2021
Nairametrics | Company Earnings
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