AIM-listed provider of flexible workspace software solutions and cloud services provider Essensys (ESYS:AIM) is taking advantage of its strong share price run to raise sizable growth cash funding to accelerate expansion.
The London-based company has raised £31.3 million and £6.3 million through primary and secondary placings respectively at a price of 285p per share, a 6.6% discount to yesterday’s closing price. Essensys also plans to raise a further £2 million via an open offer, which would take the total fresh funding to £39.6 million.
Essensys listed shares on the AIM junior market in May 2019 at 151p, tapping investors for £14 million. This year Essensys stock has more than doubled, rising 1.3% today to hit a record 309p.
RIDING REMOTE WORKING WAVE
The company wants to strike while the growth opportunity irons are still hot, with plans to use the new cash to expand its existing presence within the UK, North America and Continental Europe, establish operations in new regions across Asia Pacific and Europe, and expand sales, marketing and development headcount.
The company feels that the time is now to ‘take advantage of positive market trends as more landlords are committing more space to flexible workspaces to improve occupancy rates in a more hybrid remote working model,’ said Megabuyte analyst Rob Warensjo.
‘While this is expected to result in losses and significant cash outflows in the short term, it is expected to bear fruit materially in the medium term, as reflected by management upgrading its 2025 annual recurring revenue target by 48%.’
