Share Name Share Symbol Market Type Share ISIN Share Description
Tern Plc LSE:TERN London Ordinary Share GB00BFPMV798 ORD 0.02P
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  -0.10 -1.13% 8.75 8.50 9.00 9.10 8.75 8.85 1,121,428 10:18:22
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Software & Computer Services 0.1 -0.3 -0.1 - 21

Tern PLC: Device Authority Update - issue of further convertible loan

11/04/2019 7:01am

UK Regulatory (RNS & others)

Dow Jones received a payment from EQS/DGAP to publish this press release.

 Tern PLC (TERN) 
Tern PLC: Device Authority Update - issue of further convertible loan 
11-Apr-2019 / 07:00 GMT/BST 
Dissemination of a Regulatory Announcement, transmitted by EQS Group. 
The issuer is solely responsible for the content of this announcement. 
11 April 2019 
        Tern Plc (the "Company", or the "Group") 
        Device Authority Update - issue of further convertible loan 
Tern Plc (AIM: TERN), the investment company specialising in the Internet of 
      Things ("IoT"), announces that, together with its co-investors, it has 
      committed a further convertible secured loan to its portfolio company, 
     Device Authority Limited ("DA"), which specialises in IoT security. The 
   total funds secured by DA through this loan are US$418,895, of which Tern 
                has contributed US$315,000. 
       Following this investment, Tern's total convertible secured loan note 
position with DA is US$2,415,867. The loan is repayable on 31 December 2019. 
  Tern's continued support is testament to DA's strong track record of using 
          the funds that it has raised to deliver critical components of its 
 go-to-market strategy. During 2018, DA enhanced its products to ensure that 
   they met key client challenges and expanded its ecosystem of partners. DA 
     has continued this trend in 2019 and has secured three new orders in Q1 
     through their partner network as well as consistently increasing annual 
                recurring revenue quarter on quarter. 
    The loan note accrues an interest coupon of 5 per cent. per annum and is 
convertible automatically on completion of an equity fundraising by DA of at 
      least US$2.5 million if completed before 31 December 2019 ("Qualifying 
  Fundraising"). The conversion will be into the most senior class of shares 
    issued in the Qualifying Fundraising at the lowest fundraising price per 
If a Qualifying Fundraising is not completed before 31 December 2019, but DA 
  is able to procure an exit for its shareholders, the providers of the loan 
  can elect to either receive 300% of the principal amount of the loan notes 
held by them in addition to the accrued interest, or to convert the loan and 
 accrued interest into Class A Preference Shares of DA at a conversion price 
                 of GBP0.036681585 per share. 
 Providers of this loan to DA will also be issued with 2.6 warrants for each 
US$1 of loan notes subscribed for by them (rounded down to the nearest whole 
     number). Each warrant, which is exercisable at any time before 10 April 
2026, provides each warrant holder with the right to subscribe for one Class 
      A Preference Share of DA for each warrant held at an exercise price of 
                 GBP0.036681585 per share. 
     As part of this process, it has been agreed by all noteholders that all 
     previous convertible loan notes provided to DA have their maturity date 
                extended to 31 December 2019. 
      Al Sisto, CEO of Tern, said: "We are pleased with the progress that DA 
 continues to make with its partners, including the recent contract win with 
   nCipher Security to deliver a security solution for high quality surgical 
   devices. The capital we provided in 2018, together with our co-investors, 
      made a marked difference to DA as it set out to refine its product and 
  expand its partnership network, leading to new contract wins in the second 
      half of 2018 and into Q1 of 2019. With this in mind, we are pleased to 
 continue this support and to maintain our holding as DA focuses on building 
                its client base in the coming months." 
 This announcement contains inside information for the purposes of Article 7 
                of EU Regulation 596/2014 
Tern Plc                          via Newgate Communications 
Al Sisto/Sarah Payne 
                  Allenby Capital         Tel: 020 3328 5656 
         (Nomad and joint broker) 
     David Worlidge/Alex Brearley 
                   Whitman Howard         Tel: 020 7659 1234 
                   (Joint broker) 
Nick Lovering/Christopher Furness 
           Newgate Communications         Tel: 020 3757 6880 
    Elisabeth Cowell/Fiona Norman 
ISIN:          GB00BFPMV798 
Category Code: MSCM 
TIDM:          TERN 
LEI Code:      2138005F87SODHL9CQ36 
Sequence No.:  8171 
EQS News ID:   798671 
End of Announcement EQS News Service 

(END) Dow Jones Newswires

April 11, 2019 02:01 ET (06:01 GMT)

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