Durrant Pate/Contributor

In an Our Today follow-up, the board of digital learning company EduFocal Limited has pushed back by one week the vote on whether to have renounceable rights issue to raise well-needed funds for its expansion, among other things.

The board of the Gordon Swaby-run company met last Tuesday, October 19, to initiate discussions on the possibility of a renounceable rights issue, but adjourned the meeting until this Friday, October 27, so that deliberations may continue on the matter. A renounceable right is an offer issued by a corporation to shareholders to purchase more shares of the corporation’s stock, usually at a discount.

This offer usually coincides with the company’s decision to issue a new round of stock, which would dilute the shareholders’ equity in the company.

Stock split on the table

The board of EduFocal, which trades as LEARN, will consider whether it should recommend a stock split to shareholders at this Friday’s meeting. The stock is currently traded at J$2.54, having gone up by J$0.41 in trading last Friday, where 4,737,278 stock exchange hands.

A stock split happens when a company increases the number of its shares to boost the stock’s liquidity. Although the number of shares outstanding increases by a specific multiple, the total dollar value of all shares outstanding remains the same because a split does not fundamentally change the company’s value.

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. LEARN, which is an education technology company that focuses on digital learning experiences for companies, schools, individuals, and governments, has been growing and earlier this year 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.