Business a.m
The shareholders of Ellah Lakes Plc, a Nigerian agribusiness company listed on the Nigerian Exchange, have approved the management’s decision to raise up to N5 billion through a private placement.
The company, which went public in 2023, intends to use the funds to build storage silos with a capacity of 100,000 metric tonnes for rice, soybean, and maize. This will help the company to increase its capacity to store and process agricultural products, which will in turn support the local food supply chain and contribute to the country’s food security.
Olumide Akpata,the chairman of Ellah Lakes, spoke to shareholders at the company’s AGM, held in Lagos, about the company’s plans to overcome its challenges and emerge stronger. He expressed confidence that the management team would be able to deliver on the company’s long-term growth and profitability strategy.
Akpata, who was represented by Osaro Oyegun, the chairman, statutory audit committee, Ellah Lakes stated that the company is committed to delivering value to its shareholders in a realistic and sustainable way, through gradual growth. He highlighted the company’s strategy to focus on operational efficiency and cost management, as well as the expansion of its storage and processing capacity.
“However, we do know that the years immediately ahead of us will be considerably more challenging for many businesses due to the insecurity situation, rising inflation, supply disruptions, amongst others,” he said.
He noted that in overcoming challenges, the company received approval of the Securities & Exchange Commission (SEC) for a N2.9 billion rights issue.
According to the chairman,the company’s rights issue, once completed, would enable it to reduce its debt burden and prepare for future growth. He further stated that while the company is in the process of installing a CPO Mill, it also plans to start cultivating soybean and maize in the near future. He said that the company expects to start operating the mill in 2024 and to begin planting soybeans within the year.
“With regards to security, we are taking all the necessary actions to ensure the safety of our farms and workers to prevent and minimize the risk of crop loss, so that our business continues to grow. We have engaged security personnel to secure our farm and are working with the local community to ensure the safety of our crops and workers,” he added.
Also speaking,Chuka Mordi, the company’s managing director and CEO, informed shareholders that the N2.9 billion rights issue had been completed successfully. He expressed his gratitude to the shareholders who participated in the offering, and expressed confidence that the company would soon have positive news to share with them. He also reassured shareholders that the company is committed to its long-term growth strategy and to creating value for all stakeholders.
