Shareholders of Chams Plc have authorised the board of the company to raise N500m from rights issue.
This approval was given by the investors at the organisation’s Annual General Meeting held over the weekend in Lagos, Nigeria.
During the meeting, the board asked the shareholders to approve the exercise, to support the recapitalisation of the company.
The board was, however, authorised to raise additional N500m by way of a rights issue of ordinary shares to its shareholders, “which will be executed at such price, time or period and on such other terms and conditions as the directors may deem fit.”
Chams further said the shareholders approved that shares should be issued “below par value of 50 kobo at a discount not exceeding 50 per cent below par value for the purpose of due consideration of the price of the company’s shares on the floor of the Nigerian Stock Exchange.”
In addition, the company was allowed to “convert any convertible loan stock raised to equity by way of debt-equity conversion or through any of the mode of equity issuances approved herein upon such terms and conditions as agreed in the loan conversion agreement.”
The company is Nigeria’s providers of integrated identity management and payments transactional systems and solutions provider.
Over the last three decades, it has evolved from computer and hardware maintenance to providing enterprise technology solutions in the identity management and transaction payments space to public and private sector institutions.
The firm, which has notable Nigerians like Ituah Ighodalo and Oyewusi Ibidapo-Obe on its board, has its share price selling at the stock exchange at 22 kobo per unit.
For the past seven consecutive trading sessions, shares of Chams have remained flat at 22 kobo each at the Nigerian Stock Exchange despite a significant trading volume.
