Ellah Lakes Plc has secured its shareholders’ approval to raise the authorised share capital from N1 billion to N1.5 billion. The company’s shareholders unanimously approved the share capital increment at the recently-held Extra-ordinary General Meeting (EGM).
Speaking at the EGM, the CEO of Ella Lakes, Chuka Mordi, said the new development would provide the company with the flexibility to enhance its capital structure while it pursues an aggressive growth plan.
“As we mentioned during our listing process in June 2019, we would be seeking to raise additional capital for the Company and today, we have received approval from our shareholders to increase our authorised share capital to N1,500,000,000. This provides us with the flexibility to enhance our capital structure while we pursue our aggressive growth plan in the medium term and ensure we deliver value to our shareholders.”
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However, the share capital will be raised by the creation and addition of 1 billion ordinary shares of 0.50 Kobo each. The new shares will rank pari passu, in all respects with the existing ordinary shares.
Another authorisation the company received from its shareholders was an approval to raise additional capital either through debt or equity or a combination of both.
The new development is however in line with ELP’s ambitious growth plan which requires significant capital investments in the medium term.
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Why this matters: Existing and potential investors of Ellah Lakes now have various investment options to choose from.
Moreover, the fact that the company is venturing into new businesses with the potential of huge returns on investment should delight investors. All things being equal, good returns from these new investments will translate to good dividend yield and help the stocks of the company appreciate.
About the company: Ellah Lakes Plc is a fish farming company. Its shares traded N4.26 in the last trading session of the Nigerian Stock Exchange (NSE).