Ellah Lakes Plc has revealed that it’s going to search shareholder approval to lift as much as N250 billion by means of numerous fairness issuance choices, at an Extraordinary Common Assembly (EGM) scheduled for July 25, 2025, in Lagos.
In a disclosure, the corporate said that it’s going to search approval to lift the capital by means of personal placement, public provide, or different fairness issuance strategies, at a value and time to be decided by its administrators.
The administrators may also search approval to signal and execute all mandatory paperwork, or appoint advisers and intermediaries, to facilitate the capital elevating course of.
One other key merchandise on the agenda is the proposal to transform current director/shareholder loans, granted earlier than July 25, into extraordinary shares of the corporate, topic to regulatory approval and on the board’s discretion.
This transfer is just like a decision handed in December 2024, when Ellah Lakes agreed at its AGM to transform excellent loans owed to 2 Nigerian banks into fairness.
A 2024 conversion
At its Annual Common Assembly (AGM) held on December 5, 2024, Ellah Lakes Plc resolved to transform an excellent mortgage stability of N658 million, owed to the Central Bank of Nigeria (CBN) and First Metropolis Monument Bank (FCMB), into fairness.
The mortgage fashioned a part of a N940 million facility obtained below the CBN’s Oil Palm Plantation Growth Programme, and its conversion was accepted by the board alongside different key resolutions on the assembly.
As a part of capital restructuring, the corporate additionally accepted a rise in share capital, stating:
“That the share capital of the Firm be and is hereby elevated to such quantity as could also be decided by the Board of Administrators, rating pari passu in all respects with the prevailing extraordinary shares of the Firm.”
The choice to restructure got here after a troublesome 12 months during which Ellah Lakes reported a internet lack of N893.9 million for the monetary 12 months ended July 2024.
- Throughout the identical interval, CBO Capital, considered one of its main shareholders, bought off a big a part of its stake, offloading 81 million shares.
Regardless of these setbacks, indicators of restoration are rising.
- Within the third quarter ended April 30, 2025, the corporate reported income of N68.7 million, a serious enchancment from the N416,000 reported in the identical interval the earlier 12 months.
Efficiency
Ellah Lakes reported income of N68.7 million for the interval ended April 30, 2025, pushed by the sale of agricultural merchandise.
No price of gross sales was recorded for the quarter, leaving gross revenue equal to income. Nonetheless, working bills considerably eroded top-line positive factors.
- Administrative bills greater than doubled to N115.5 million from N54.7 million in the identical interval final 12 months.
- Personnel bills additionally got here in at a excessive of N183.8 million.
Consequently, the corporate posted an working lack of N238.1 million, in comparison with the N215.5 million loss recorded within the earlier 12 months.
Regardless of the weak backside line, investor sentiment has remained upbeat.
The inventory has gained over 121.5% year-to-date, with the majority of the rally, 115.38%, occurring in June alone, reflecting rising confidence within the firm’s turnaround efforts.
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