The board of educational software developer Entellect Solutions (ASX:ESN) has endorsed the off-market takeover offer made by Mooter Media (ASX:ESN).
In a target statement dispatched yesterday, Entellect advised shareholders to accept the offer, which is valued at 0.04 cents per share.
Mooter is offering two MMZ shares, one option at $0.015 and one option at $0.05. The valuation Entellect is using does not consider the options.
Mooter Media plans to use the assets to develop its web-based games business, focusing on social games while using Entellect to develop educational games.
Entellect was in April forced to place its operational subsidiary, MXL Consolidated, into voluntary administration. ESN shares have been suspended since then.
In the target statement, Entellect said this has left it with an inability to raise capital or debt funding. As a result, “if the offer lapses and the company becomes insolvent, there is a real risk that there may be no residual value left for Entellect shareholders.”
MMZ shares ended Monday's trading unchanged at $0.008 per share.