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.