Ellah Lakes CEO Chuka Mordi has said that the company incurred significant costs from its aborted N235 billion capital raise due to advisory, legal, and regulatory engagements tied to the transaction.
This was disclosed at the company’s 2026 Annual General Meeting (AGM) held in Lagos on Tuesday, May 5, 2026, where management also reviewed performance and funding developments.
He explained that the offer, structured as a major corporate transaction, still attracted fees even though it was ultimately cancelled after failing to meet the minimum subscription threshold.
- “It was an M&A-type transaction, so even though it was not ultimately successful, we still had fees emanating from it that we had to settle,” he said.
What the CEO is saying
Mordi stated that external auditors, technical advisers, and regulatory bodies, including the SEC and CAC, were fully involved throughout the process, with all related obligations fulfilled despite the cancellation.
- “We retained Deloitte for the audit activity, then external advisers, and even though the exercise was cancelled, the SEC and CAC both had to be paid,” he revealed.
He noted that once these “exceptional” capital-raising costs were removed, expenditure pressures would ease significantly.
For the 17-month period ended December 31, 2025, the company reported “aborted public offer costs” of N1.7 billion, a spike compared to just N54.3 million recorded in July 2024.
However, Mordi said increased production will help even out operational cost pressures, reflected in Q1 2026 revenue jumping to N359.4 million from N19.6 million in Q1 2025, driven by stronger agricultural sales.
After cost of sales of N74.1 million, gross profit stood at N285.3 million, while operating loss was N273.4 million, down from N514.1 million in Q1 2025, as the company considers other expansion plans following the cancelled public offer.
Get up to speed
On 20 February 2026, Ellah Lakes announced that it would refund applicants after its N235 billion public offer failed to meet the minimum subscription threshold required for allotment.
The public offer, communicated in early November 2025, sought subscription for up to 18.8 billion ordinary shares of N50 each at N12.50 per share.
- The funds were expected to support growth initiatives and strengthen its agro-processing operations, including plantation expansion and processing capacity upgrades.
Despite extending the subscription window by two weeks, investor participation did not reach the minimum level required for allotment.
In late February, the company confirmed that all subscription funds received would be returned to investors in line with the procedures outlined in the offer documents.
What you should know
- Ellah Lakes shares are priced at N11.60 per share ahead of the market open on 6 May 2026, down over 13% year-to-date.
- In 2025, the company’s shares surged by 324.05% on the Nigerian Exchange, marking its strongest full-year performance to date.
In 2026 so far, over 1 billion units of the company’s shares have been traded on the exchange.
