essensys PLC (AIM:ESYS, FRA:3L8) shares were down around 10% on Tuesday, after it agreed a recommended 17p-a-share cash offer that would take the AIM-listed flexible workspace software group private, valuing its equity at about £11.3 million.
The bid is being made by essensys Bidco, a newly incorporated company controlled by founder and former chief executive Mark Furness and backed by a concert party of long-standing investors.
Alongside the cash option, eligible shareholders can elect to roll into the private vehicle on a one-for-one basis via non-voting New Bidco Shares, which the announcement notes will be unquoted and illiquid.
Tuesday's RNS also underlined the near-term funding backdrop, with essensys pointing to £0.9 million of cash at 31 January and said discussions were ongoing to secure a debt facility to provide additional headroom, as annual recurring revenue slipped to £12.7 million following customer churn.
In London, the share was down 9.89%, changing hands at 16.22p.