Ellah Lake declares zero revenue for two consecutive years as CBO Capital sells down 81 million shares

The struggling company disclosed a net loss of N893.9 million for the year ending July 2024, underscoring the financial challenges it faces despite ambitious plans for growth.

Meanwhile, one of its majority stakeholders, CBO Capital announced the sale of 81 million shares in the company.

In a recent disclosure seen by Naijaonpoint, CBO Capital, one of Ellah Lakes’ largest shareholders, announced the sale of approximately 81 million shares.

The shares were sold in two tranches: 79 million shares at N3.67 per share and another 1.4 million shares at N3.75 per share.

While the identity of the buyer remains unclear, this divestment aligns with CBO Capital’s earlier statement in July, where it signaled intentions to transfer some of its holdings to its shareholders and creditors to meet obligations.

“We are pleased to announce that CBO Capital Partners Limited (“CBO”), a major shareholder of Ellah Lakes Plc, is transferring a portion of its Ellah Lakes shares to its shareholders and creditors in a cross deal,” the July statement read. “This trade move is aimed at offsetting CBO’s outstanding obligations to CBO Shareholders while simultaneously fulfilling Nigerian Exchange Limited’s (NGX) requirements on the free-floating of Ellah Lakes shares.”  

This strategic divestment is part of CBO’s efforts to improve liquidity in Ellah Lakes’ shares while satisfying regulatory standards. By reducing its stake, CBO appears to be both addressing financial obligations and enhancing the free float of Ellah Lakes’ shares on the NGX, a move that could attract new investors seeking liquidity.

Ellah Lakes’ recent filing further reveals a marked shift in its shareholding structure. Following CBO Capital’s sale, its stake in the company has dropped from 28.2% in 2023 to 8.1% in 2024, leaving CBO with approximately 225.3 million shares.

The company has a total outstanding share count of 2.75 billion, with nine substantial shareholders controlling nearly 69% of the company’s equity.

The company’s financial performance continues to reflect significant operational difficulties.

As it battles financial woes, Ellah Lakes has been exploring options to bolster its capital base.