Zichis Agro Allied Industries Plc (Zichis), one of Nigeria’s emerging integrated agribusiness companies has disclosed a strategic non-equity capital injection of N2 billion into the Company by its core promoters, Chilla Entertainment Limited and Winners Investment & Trust Limited.
“This is a senior liability to the Company which will be treated as a long-term liability in the balance sheet of the Company to be redeemed at a future date in terms of debt conversion to equity during a public offer or right issues,” the company said in a statement at the Nigerian Exchange Limited (NGX).
It further noted that the capital injection further demonstrates the promoters’ continued confidence in the Company’s vision, growth prospects, and long-term value creation strategy.
“This significant funding commitment represents a major milestone in the Company’s ambitious roadmap towards its planned growth and expansion programme, which is designed to transform Zichis into one of Nigeria’s leading agro-industrial enterprises with a fully integrated value chain spanning feed production, poultry farming, palm cultivation, and agro-processing,” Zichis said.
The N2 billion capital injection by the Company’s promoters is a powerful endorsement of Zichis Agro’s strategic direction and future potential. At a time when investors are increasingly focused on companies with strong fundamentals, committed leadership, and clear growth strategies, this investment underscores the confidence of the Company’s insiders in the value and sustainability of the business.
The transaction further aligns management, promoters, and shareholders around a common objective: building a resilient, scalable, and highly profitable agribusiness platform capable of delivering sustainable returns to all stakeholders.
The newly injected capital will primarily be deployed towards expanding the Company’s operational capacity and strengthening its working capital position. Key areas of investment include: expansion of poultry operations, significant increase in poultry production capacity, strengthening of the Company’s integrated livestock value chain, enhancement of operational efficiency and output levels, expansion of feed mill production, increased procurement of raw materials to support higher production volumes, strengthening the supply chain for the Company’s feed mill operations, and positioning the business to meet growing demand within Nigeria’s livestock and poultry sectors.