As part of its larger N50 billion growth and expansion agenda, Zichis Agro Allied Industries Plc has announced a N2 billion non-equity capital infusion from its primary promoters, Chilla Entertainment Limited and Winners Investment & Trust Limited.
Akabusi Anthonia Chinyere, the company's managing director and chief executive officer, and Chris A. Ogbaisi, executive director of finance and strategy, both signed a statement announcing the development.
The company claims that the investment commitment is an important step in its long-term plan to create a fully integrated agribusiness platform that includes agro-processing, chicken farming, feed production, and palm planting.
According to the company, the new investment demonstrates the promoters' faith in Zichis Agro's vision, development potential, and value generating approach.
The money, according to the corporation, would be shown on its balance sheet as a senior long-term liability and may be converted to equity at a later rights issue or public offering.
Zichis Agro stated the freshly injected cash would be deployed to improve operating capacity and strengthen its working capital position.
The most recent funding comes after the company's third Annual General Meeting (AGM) saw shareholder permission to raise up to N50 billion through debt and equity financing.
In order to finance the purchase of 2,000 acres of land in Ogun State worth N5.5 billion, shareholders approved the issuing of 400 million ordinary shares through a special placement as part of the approved growth plan.
Additionally, the firm was given permission to raise up to N5 billion through commercial papers and other debt instruments. In order to make room for future stock issuances, it also increased its share capital by N1 billion.
To satisfy growing market demand, the firm intends to expand its capacity for producing poultry, strengthen integration throughout its livestock value chain, and boost operational effectiveness.
In order to raise feed mill output volumes and improve supply chain operations within Nigeria's livestock and poultry sectors, a portion of the cash will support greater procurement of raw materials.
Additionally, the business will speed up the development of the 2,000-acre agricultural land it recently purchased in Ogun State. Across the Ogbere and Ajebo axes, land-clearing operations have already started. The initiative is anticipated to greatly increase the company's agricultural asset base and long-term revenue potential.
According to Zichis Agro, the most recent investment unites the interests of owners, promoters, and management in creating a profitable and scalable agribusiness.
As it grows its agricultural area and production capability, the company hopes to generate N540 million in income per month.
The company has improved its animal feed mill from its initial production capacity of two tonnes per hour to five tonnes per hour, and operations are already under way, according to Chris Ogbaisi, Executive Director, Finance & Strategy.
In addition to promoting long-term growth and profitability, the expansion is anticipated to improve the company's standing within Nigeria's agricultural value chain.
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