Ellah Lakes Eyes N250bn Boost, Shareholder Backing

Ellah Lakes Plc has announced plans to seek shareholder approval to raise up to N250 billion through various equity issuance methods. The proposal will be tabled at an Extraordinary General Meeting scheduled for July 25, 2025, in Lagos.

In a corporate disclosure, the company said the capital could be raised via private placement, public offer, or other equity instruments, with the pricing and timing to be determined by its board of directors. The board is also seeking approval to sign necessary documents and appoint advisers or intermediaries to facilitate the capital raise.

A major part of the proposal includes the conversion of existing director and shareholder loans, granted prior to July 25, into ordinary shares. This conversion will be subject to regulatory approval and executed at the discretion of the board.

This plan follows a similar move in December 2024, when the company converted an outstanding loan balance of N658 million—borrowed from the Central Bank of Nigeria and First City Monument Bank—into equity. The loan was part of a N940 million facility under the CBN’s Oil Palm Plantation Development Programme. The conversion was approved during Ellah Lakes’ Annual General Meeting, along with a resolution to increase the company’s share capital to an amount to be determined by the board, with new shares to rank equally with existing ones.

The proposed capital restructuring comes after a challenging fiscal year that ended in July 2024, during which the company posted a net loss of N893.9 million. That year also saw CBO Capital, a major shareholder, divest 81 million shares in the company.

Signs of recovery emerged in the third quarter ended April 30, 2025. Ellah Lakes recorded revenue of N68.7 million, a significant improvement from N416,000 in the same period the previous year, mainly from agricultural product sales. No cost of sales was recorded, meaning gross profit matched revenue, but the gains were eroded by rising expenses. Administrative costs more than doubled to N115.5 million, while personnel expenses hit N183.8 million. Consequently, the company recorded an operating loss of N238.1 million, higher than the N215.5 million loss reported the year before.

Despite ongoing losses, investor confidence appears to be rebounding. The company’s stock has surged over 121.5% year-to-date, with 115.38% of that growth occurring in June alone, reflecting renewed optimism around the firm’s turnaround efforts.