Ellah Lakes Plc has revealed that it will seek shareholder approval to raise up to N250 billion through various equity issuance options, at an Extraordinary General Meeting (EGM) scheduled for July 25, 2025, in Lagos.
In a disclosure, the company stated that it will seek approval to raise the capital through private placement, public offer, or other equity issuance methods, at a price and time to be determined by its directors.
The directors will also seek approval to sign and execute all necessary documents, or appoint advisers and intermediaries, to facilitate the capital raising process.
Another key item on the agenda is the proposal to convert existing director/shareholder loans, granted before July 25, into ordinary shares of the company, subject to regulatory approval and at the board’s discretion.
This move is similar to a resolution passed in December 2024, when Ellah Lakes agreed at its AGM to convert outstanding loans owed to two Nigerian banks into equity.
At 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 formed part of a N940 million facility obtained under the CBN’s Oil Palm Plantation Development Programme, and its conversion was approved by the board alongside other key resolutions at the meeting.
As part of capital restructuring, the company also approved 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 came after a tough year in which Ellah Lakes reported a net loss of N893.9 million for the financial year ended July 2024.
Despite these setbacks, signs of recovery are emerging.
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 significantly eroded top-line gains.
As a result, 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 upbeat.
The stock has gained over 121.5% year-to-date, with the bulk of the rally, 115.38%, occurring in June alone, reflecting growing confidence in the company’s turnaround efforts.
The stock has gained over 121.5% year-to-date, with the bulk of the rally, 115.38%, occurring in June alone, reflecting growing confidence in the company’s turnaround efforts.