Shareholders to sell 25% Ellah Lakes’ shares

Following the lack of liquidity in Ellah Lakes Plc’s shares, three shareholders have undertaken to sell down 25 per cent of their shares to resolve the company’s free float deficiency on or before March 15, 2021.

A statement released on Thursday by the Nigerian Stock Exchange disclosed.

It noted that the company’s fleet float currently stood at 14.55 per cent, which is below the 20 per cent requirement by the NSE.

“The NSE’s regulations require that all companies listed on the exchange’s main board must have a minimum of 20 per cent of their shares held by members of the public or a free float value of N20bn.

“In a bit to rectify this situation, CBO Capital Partners, Blackman & Co, and Osaro Oyegun have given an undertaking with the intent of bringing the company into compliance with the 20 per cent free float requirement of the Nigerian Stock Exchange,” the statement read.

Speaking to the development, the Chief Executive Officer of Ellah Lakes, Chuka Mordi, said, “We fully appreciate why we need to have more shares in the hands of the public, which is why we are listed on the Nigerian Stock Exchange.

“We are working towards compliance, and we fully expect we can achieve this by the deadline of March 15, 2021, to galvanise and encourage liquidity in the shares of Ellah Lakes Plc.”