Secure Electronic Technology Plc has revealed plans to seek shareholders’ approval for a share reconstruction and recapitalisation amid a net loss after tax of N121.03m in 2024.
This was disclosed in a notice of an extraordinary general meeting filed on the portal of the Nigerian Exchange Limited on Wednesday.
SET Plc, formerly National Sports Lottery, was incorporated in 2001 with an exclusive 30-year licence granted by the Federal Government to operate the National Lottery in Nigeria. SET Plc is a technology-focused organisation, with its core competence in lottery and gaming.
According to the notice, at the EGM scheduled for next Wednesday in Lagos, shareholders will vote on a special resolution involving the share reconstruction and recapitalisation of the company as proposed by Apex Alpha Acquisitions Limited.
It stated, “To consider and, if approved, to pass the following resolution as a special resolution and thereby adopt the recommendation of the Directors Approval of Reconstruction: That subject to all regulatory approvals, the share reconstruction and recapitalisation proposed by Apex Alpha Acquisitions Limited”, a company incorporated in Nigeria under the Companies and Allied Matters Act 2020, be hereby approved; “that the proposed share reconstruction and recapitalisation of the Company shall be by way of a private placement, upon the terms agreed by both parties under the Definitive Agreement, that the issued share capital of the Company be reduced from N2,815,770,000.00 represented by 5,631,540,000 ordinary shares of 50 kobo each to 1,407,885,000 ordinary shares of 50 kobo each, subject to the approval of the Federal High Court, Securities and Exchange Commission and other relevant regulatory authorities.”
With the reconstruction of the shares, shareholders will see every four shares held converted to one. However, the plan includes a proportional upward adjustment in the share price of the company after the conversion so that the value of one converted share equals the market price of four pre-reconstruction shares.
The audited financial statements of the company revealed that it recorded a net loss after tax of N121,025.233 for 2024. This represented a moderation of 35 per cent from the previous year’s loss of N187.52m.
Company revenue increased by 24 per cent from N3.49bn in the prior year to N4.35bn for the year ended December 31, 2024.
Company cash flows from operating activities decreased by 253 per cent from N13.54m in 2023 to a negative N34.21m in 2024.
