Tern PLC: Issue of further loan to Device Authority Limited (723583)

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 Tern PLC (TERN) 
Tern PLC: Issue of further loan to Device Authority Limited 
 
14-Sep-2018 / 07:00 GMT/BST 
Dissemination of a Regulatory Announcement, transmitted by EQS Group. 
The issuer is solely responsible for the content of this announcement. 
 
14 September 2018 
 
        Tern Plc (the "Company", or the "Group") 
 
        Issue of further loan to Device Authority Limited 
 
Tern Plc (AIM: TERN), the investment company specialising in the Internet of 
Things ("IoT"), announces that it has provided a further convertible secured 
       loan of US$525,000 to its portfolio company, Device Authority Limited 
("DA"). The loan is repayable on 28 December 2018 (the "DA Loan"). Following 
this investment, Tern's total convertible secured loan note position with DA 
                is US$1,700,867. 
 
      The total funds secured by DA through this facility from DA's existing 
                shareholders, including Tern, are US$730,516. 
 
   In providing this support, DA's shareholders, including Tern, are pleased 
     with the progress DA continues to make with its partners, including the 
           launch of a connected health solution with Thales and the ongoing 
recognition of its value in the IoT security market. This was highlighted by 
being recognised as the 2018 Emerging Star in the global IoT security market 
by Quadrant Knowledge Solutions. DA also continues to improve KeyScaler, and 
a recent new release introduces support for Comodo CA and IdenTrust (part of 
           HID Global). These new service connectors offer customers greater 
flexibility and integration with Certificate Authorities ("CA") for enabling 
          automated certificate provisioning and management for IoT devices. 
 
This fourth tranche of the convertible secured loan note accrues an interest 
         coupon of 5 per cent. per annum and is convertible automatically on 
 completion of an equity fundraising in DA of at least USD$2.5 million which 
        is completed before 28 December 2018 ("Qualifying Fundraising"). The 
       conversion will be into the most senior class of shares issued on the 
            Qualified Fundraising at the lowest fundraising price per share. 
 
If a Qualifying Fundraising is not completed before 28 December 2018, but DA 
   is able to procure an exit, 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 the DA Loan have also been issued with 2.6 warrants for each $1 
     of loan notes subscribed for by them (rounded down to the nearest whole 
 number). Each warrant, which is exercisable at any time before 13 September 
2025, 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 28 December 2018. 
 
      Al Sisto, CEO of Tern, said: "We are very pleased to be continuing our 
     support of Device Authority following the progress the company has been 
  making with its partners, including the recent product launch with Thales. 
      It is pleasing to see the company achieving recognition within the IoT 
  security market for the products and partnerships being formed and we look 
                forward to reporting on future developments." 
 
 This announcement contains inside information for the purposes of Article 7 
                of EU Regulation 596/2014 
 
Enquiries 
 
Tern Plc                          via Redleaf Communications 
 
Al Sisto/Sarah Payne 
 
                  Allenby Capital         Tel: [phone] 
 
         (Nomad and joint broker) 
 
     David Worlidge/Alex Brearley 
 
                   Whitman Howard         Tel: [phone] 
 
                   (Joint broker) 
 
Nick Lovering/Christopher Furness 
 
           Redleaf Communications         Tel: [phone] 
 
    Elisabeth Cowell/Fiona Norman 
 
ISIN:          GB00BFPMV798 
Category Code: MSCH 
TIDM:          TERN 
LEI Code:      2138005F87SODHL9CQ36 
Sequence No.:  6014 
EQS News ID:   723583 
 
End of Announcement EQS News Service 
 
 

(END) Dow Jones Newswires

September 14, 2018 02:02 ET (06:02 GMT)