Ellah Lakes to Raise N250 Billion through Equity Issuances
Ellah Lakes Plc has announced its intention to seek shareholder approval for raising up to N250 billion through diverse equity issuance avenues at an Extraordinary General Meeting (EGM) slated for July 25, 2025, in Lagos.
In a declaration, the company outlined plans to secure approval for capital acquisition via private placement, public offering, or alternative equity issuance methods, at a price and timing to be determined by its directors.
The directors will additionally seek authorization to execute all requisite documents or appoint advisors and intermediaries to streamline the capital-raising process. Another significant agenda item is the proposal to convert existing director/shareholder loans, granted prior to July 25, into ordinary shares of the company, contingent upon regulatory approval and at the board’s discretion.
This maneuver mirrors a resolution passed in December 2024 when Ellah Lakes consented at its AGM to transform outstanding loans owed to two Nigerian banks into equity.
A 2024 conversion:
During its Annual General Meeting (AGM) held on December 5, 2024, Ellah Lakes Plc resolved to convert an outstanding loan balance of N658 million, owed to the Central Bank of Nigeria (CBN) and First City Monument Bank (FCMB), into equity.
The loan was part of a N940 million facility secured under the CBN’s Oil Palm Plantation Development Programme, and its conversion received board approval alongside other key resolutions at the meeting.
As part of capital restructuring, the company sanctioned an increase in share capital, stating:
“That the share capital of the Company be and is hereby increased to such amount as may be determined by the Board of Directors, ranking pari passu in all respects with the existing ordinary shares of the Company.”
The decision to restructure followed a challenging year in which Ellah Lakes reported a net loss of N893.9 million for the financial year ended July 2024.
During the same period, CBO Capital, one of its principal shareholders, divested a substantial portion of its holdings, offloading 81 million shares. Despite these setbacks, signs of recovery are emerging.
In the third quarter ended April 30, 2025, the company reported revenue of N68.7 million, a significant improvement from the N416,000 reported in the same period the previous year.
Performance:
Ellah Lakes reported revenue of N68.7 million for the period ended April 30, 2025, driven by the sale of agricultural products.
No cost of sales was recorded for the quarter, leaving gross profit equal to revenue. However, operating expenses considerably eroded top-line gains.
Administrative expenses more than doubled to N115.5 million from N54.7 million in the same period last year. Personnel expenses also amounted to a substantial N183.8 million.
Consequently, the company posted an operating loss of N238.1 million, compared to the N215.5 million loss recorded in the previous year.
Despite the weak bottom line, investor sentiment has remained buoyant. The stock has surged over 121.5% year-to-date, with the majority of the rally, 115.38%, occurring in June alone, reflecting burgeoning confidence in the company’s turnaround efforts.
