Tern Plc Statement Re Update On Device Authority Fundraise

 
TIDMTERN 
 
 
   29 September 2017 
 
   Tern Plc (AIM: TERN) 
 
   Update on Device Authority Limited Fundraise 
 
   Further to the announcement of 11 August 2017, Tern Plc (AIM:TERN), the 
investment company specialising in the Internet of Things ("IoT"), is 
pleased to announce that its investee company, Device Authority Limited 
("Device Authority"), commenced its fundraising activity with US Capital 
Partners (www.uscapitalpartners.net) on 28 September 2017 to raise new 
equity through a private placement offering.  The investment opportunity 
is initially available to registered accredited investors and will be 
open for up to 120 days. 
 
   As previously announced, the minimum total subscription to be accepted 
by Device Authority through the private placement will be US$2.5 million, 
out of a total US$10 million offering, and first close is now expected 
to be during October 2017.  The fund-raising attributes a pre-money 
valuation to Device Authority of US$36 million or US$0.75 per share, an 
increase from the US$23 million or US$0.47 per share at the last equity 
issue in October 2016. 
 
   Upon completion of the US$2.5 million first close, Tern's ownership will 
be 53.2%. 
 
   Upon a successful and full completion of the proposed fund raise, Device 
Authority is forecast to achieve the following: 
 
 
 
 
For year ending           2015       2016        2017        2017       2018       2019       2020       2021 
                                               6 months 
31 December                                    to 30 June 
 Consolidated results    Actual     Actual       Actual    Projected  Projected  Projected  Projected  Projected 
                             $000       $000         $000       $000       $000       $000       $000       $000 
Recognised revenue           71.2       57.0         39.8      604.2    5,106.6   10,805.0   20,342.4   33,413.3 
Cost of sale                    -          -            -        8.5       76.6      149.7      286.8      501.2 
 
Gross profit/(loss)          71.2       57.0         39.8      595.7    5,030.0   10,655.2   20,055.6   32,912.1 
 
SG&A                      1,132.8    2,215.6      1,725.9    2,837.6    4,776.9    6,403.5    8,440.9   11,297.4 
R&D                         195.6      653.7         40.4    1,472.1    2,229.1    2,566.2    3,019.4    3,904.7 
 
EBITDA                  (1,257.2)  (2,812.4)    (1,726.5)  (3,713.9)  (1,976.0)    1,685.5    8,595.3   17,710.0 
 
Net profit/(loss)       (1,278.8)  (2,714.3)    (1,823.1)  (3,733.9)  (2,276.8)    1,340.5    8,240.6   17,374.9 
 
 
 
   This announcement includes inside information as defined in Article 7 of 
the Market Abuse Regulation No. 596/2014 and is disclosed in accordance 
with the Company's obligations under Article 17 of those obligations. 
 
 
 
   Enquiries 
 
 
 
 
Tern Plc                       via Redleaf 
 Al Sisto/Sarah Payne 
 
  WH Ireland                     Tel: [phone] 
  (NOMAD and joint broker) 
  Mike Coe/Ed Allsopp 
 
  Whitman Howard                 Tel: [phone] 
  (Joint broker) 
  Nick Lovering/Francis North 
 
  Redleaf Communications         Tel: [phone] 
  David Ison/Elisabeth Cowell 
 
 
 
   This announcement is distributed by Nasdaq Corporate Solutions on behalf 
of Nasdaq Corporate Solutions clients. 
 
   The issuer of this announcement warrants that they are solely 
responsible for the content, accuracy and originality of the information 
contained therein. 
 
   Source: Tern Plc via Globenewswire 
 
 
 
 

(END) Dow Jones Newswires

September 29, 2017 02:01 ET (06:01 GMT)

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