Ellah Lakes shareholders approve debt conversion to equity, raise share capital at AGM 

The resolution to convert Ellah Lakes’ outstanding debt into ordinary shares, along with other agenda items, was disclosed on the Nigerian Exchange (NGX) on December 9, 2024, and signed by the company secretary, OAKE Legal.

According to the disclosure, the conversion will be subject to specific terms and conditions determined by the Board of Directors, pending necessary regulatory approvals.

Additionally, the Board of Directors approved an increase in the company’s 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 AGM also covered regular business matters, including the appointment and reelection of directors, the appointment and remuneration of new auditors, and the reelection of shareholders to the statutory audit committee.

At the Annual General Meeting, shareholders approved converting the company’s outstanding debt into ordinary shares, subject to terms set by the Board of Directors and necessary regulatory approvals. Additionally, shareholders ratified all actions taken by the Board and management in relation to this debt conversion process.

Consequently, the current financial year was extended to 17 months, covering the period from August 1, 2024, to December 31, 2025.

Ellah Lakes Plc recently disclosed a net loss of N893.9 million for the year ending July 2024, highlighting the financial challenges confronting the company despite its ambitious growth objectives.

Additionally, the conversion of outstanding debt into ordinary shares and the company’s plans to raise share capital are part of broader efforts to secure necessary capital and strengthen shareholder confidence.

Also at the Annual General Meeting, shareholders approved the company’s audited financial statements for the fiscal year ending July 31, 2024, along with the reports from the directors, auditors, and the audit committee.