The board of digital learning firm EduFocal Limited has voted in favour of having a renounceable rights issue to raise well-needed funds for its expansion.

Directors gave their approval at last Friday’s (October 27, 2023) board meeting, having pushed back the vote on the rights issue one week earlier. The company will now seek the approval of its shareholders to pursue a subdivision of its share capital in order to execute the rights issue.

Voting on the rights issue and subdivision of the company’s share capital will now take place at an upcoming shareholders’ meeting.

A right issue is an offer by a company to shareholders to purchase more shares of that company, usually at a discount. This offer usually coincides with the company’s decision to issue a new round of stocks, which would dilute the shareholders’ equity in the company. No details have been released on the projects or initiatives to be funded from the proposed rights issue, which, if accepted, would be formally executed before year-end.

Edufocal, which focuses on digital learning experiences for companies, schools, individuals, and governments, has been growing. Earlier this year, it expanded to Nigeria, where it established a subsidiary.

Venturing into Africa marked a significant milestone for the company, which established EduFocal Africa Inc. and EduFocal Nigeria Limited. EduFocal Africa is not just about bringing technology to Nigeria, but also revolutionising education there.