Application list for the ongoing N2.9 billion rights issue by Ellah Lakes Plc is scheduled to close on Wednesday.
Ellah Lakes is offering 1.0 billion ordinary shares of 50 kobo each to existing shareholders at N2.90 per share. The rights issue was pre-allotted on the basis of one new share for every two shares held as at the close of business on Friday, February 10, 2023.
The agricultural company will use the net proceeds of the rights issue to strengthen its balance sheet to support new business developments.
Ellah Lakes has signed many agreements in recent period for major projects that are expected to form the backbone of the company’s business diversification drive.
It had reached agreement to build a 600-tons sugar refinery in collaboration with Montserrado Investment Ltd. The sugar processing facility is expected to run on 100 per cent renewable power.
Ellah Lakes had earlier reached agreement with Ondo State government on the development of a palm oil and cassava farm, covering about 5,000 hectares. Both partners would jointly develop and manage the farm for the cultivation of oil palm and cassava in Ondo State.
Ellah Lakes had in August 2020 entered into exclusive discussions to acquire the entire issued capital of an oil palm processing company with substantial assets in Delta State.
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Chief Executive Officer, Ellah Lakes Plc, Chuka Mordi said the refinery agreement was a significant landmark for the company in fulfilling its strategic objective of diversifying its portfolio and production base.
“We are very pleased at this collaboration and look forward to a mutually beneficial, valuable and fruitful venture,” Mordi said.
He noted that the new sugar plant aligns with the National Sugar Master Plan (NSMP) being championed by the National Sugar Development Council (NSDC), which is geared towards accelerating the development and growth of the local sugar industry to achieve national self-sufficiency.
Ellah Lakes was incorporated on July 2, 1980 and was listed on the Nigerian Exchange (NGX) on January 14, 1993. Originally a fish-farming company, Ellah Lakes had recently embarked on a comprehensive restructuring and diversification of its businesses. In 2019, it acquired Telluria in order to diversify its product offerings in the agribusiness sector.
Ellah Lakes acquired 100 per cent equity stake in Telluria with effect from May 7, 2019. Having complied with all the necessary regulatory requirements, the acquisition was approved by the NSE and Securities and Exchange Commission (SEC).
Mordi has said ongoing restructuring would make Ellah Lakes to attain profitability and further foster its vision of being the leading supplier of sustainable edible oil and starch to the consumer goods sector in Nigeria.
He noted that prior to 2019, Ellah Lakes was an insolvent entity but Telluria Ltd completed a reverse acquisition of the company, recapitalising the balance sheet and repositioning the business for growth with a new board and management team.
“Today, we are undergoing a restructuring exercise, which will return the business to profitability and reposition it as a leading agribusiness player across West Africa. From a corporate governance point of view, we hold ourselves to high standards of governance as expected by our shareholders and regulator, and as is befitting of our vision to become the leading supplier of sustainable edible oils and starch to the FMCG Industry in Nigeria, particularly, and West Africa, in general,” Mordi said