Tern PLC: Raises GBP700,000 and Acquires Stake in Medical VR Company (685051)

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 Tern PLC (TERN) 
Tern PLC: Raises GBP700,000 and Acquires Stake in Medical VR Company 
 
14-May-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 May 2018 
 
          Tern Plc ("Tern" or the "Company") 
 
         Raises GBP700,000 and Acquires Stake in Medical VR Company 
 
 Tern Plc (AIM:TERN), the investment company specialising in the Internet of 
   Things ("IoT"), is pleased to announce that it has raised GBP700,000 before 
  expenses through an unconditional placing of 3,783,784 new ordinary shares 
 of 0.02p each at a price of 18.50 pence per ordinary share (the "Placing"). 
 
          This, together with the funds raised on 8 May, has facilitated the 
            acquisition of a 18.3% holding (post new money) in FVRVS Limited 
                     ("FundamentalVR") for GBP798,309. 
 
                    Highlights 
 
  · FundamentalVR has built an immersive simulation application training 
  platform for surgeons which creates virtual reality ("VR") simulations of 
  procedures 
 
  · Provides Tern with exposure to the rapidly growing medical simulation 
  market, which is anticipated to grow to $2.3 billion by 20211 
 
  · Based on FundamentalVR's latest statutory accounts for the year ended 31 
  December 2016, FundamentalVR had net assets of GBP96,940 and a retained 
  profit of GBP63,768 for the year. 
 
  · Fundamental VR will use the funds to develop a SaaS delivery systems, 
  enabling it to add to its surgical simulations and broaden its customer 
  base. 
 
  · Represents the first of its kind for Tern due to FundamentalVR being in 
  the IoT healthcare services market and given that its applications use VR 
  and haptic (the sense of touch) devices 
 
  · The transaction is in line with the Company's strategy to increase its 
  portfolio to circa 12 investments and brings the number of Tern's 
  portfolio companies up to seven. 
 
Tern CEO, Al Sisto, said, "We are truly excited to add FundamentalVR to our 
portfolio of potentially transformational companies. FundamentalVR is a 
highly disruptive company with the potential to improve patient outcomes in 
the medical industry. Its experienced management team has the credentials to 
steer FundamentalVR to capitalise on the rapidly growing medical simulation 
market and in the process create shareholder value for Tern. 
 
  "We look forward to working with them to help them achieve their ambitions 
        of building a world leading SaaS based immersive surgical simulation 
 platform using haptic intelligent feedback via VR to respond to surgeons in 
real-time. With a range of customers already engaged and generating revenue, 
                    they have a great platform from which to grow." 
 
    FundamentalVR CEO, Richard Vincent, said, "We are delighted to secure an 
          investment from Tern. This investment in our business will help to 
accelerate us into market and build out a market leading SaaS based training 
      business. Less than half of one percent of surgeons worldwide have any 
 day-to-day access to surgical simulation. Through our platform, Fundamental 
Surgery we believe that our strategy of high-end simulation through low-cost 
  immersive technology will help to dramatically change this over the coming 
    years and put quality training within arm's reach of surgeons across the 
                    globe. " 
 
  1) "Healthcare/Medical Simulation Market by Product & Services (Patient 
  Simulator, Task Trainers, Surgical Simulator, Web-based Simulation, 
  Software, Dental Simulator, Eye Simulator), End User (Academics, Hospital, 
  Military) - Global Forecast to 2021", published by MarketsandMarkets 
 
                    Further Information 
 
 FundamentalVR's goal is to transform the way surgeons prepare, practice and 
         refine their skills. It has built an immersive, surgical simulation 
 application platform, Fundamental Surgery, to provide medical professionals 
     with the opportunity to rehearse, practice and test themselves within a 
         safe, controllable space that is as close to real life as possible. 
 
Fundamental VR is led by surgical training experts and leading technologists 
 with a mission to democratise surgical training by bringing simulation into 
the hands of medical professionals around the world, using low cost, readily 
        available technology. FundamentalVR's unique software platform takes 
advantage of readily available VR software and devices, such as the FaceBook 
    owned Oculus Rift, and combines it with cutting edge haptics to create a 
  simulation system that can be used on any modern PC set up. Using computer 
 learning, the software platform works together with haptic hardware devices 
to simulate the physical sensation of operating on human tissue. It also has 
the capability to provide AI driven real-time feedback, procedure correction 
      data and best practise insight. The result is a simulation system that 
    requires a low hardware investment and a simple ongoing licence fee that 
       provides surgeons with more hands-on experience to be better prepared 
                    professionals, resulting in better patient outcomes. 
 
        Fundamental Surgery is currently sold as a 'closed' system to device 
       manufacturers and pharma companies and the company will use the funds 
   provided by this investment to develop a SaaS delivery systems. This will 
 enable it to add to its surgical simulations and broaden its customer base. 
 
 Tern expects to increase its holding percentage over time, as FundamentalVR 
  executes its strategy and meets its milestones. The transaction is in line 
           with the Company's strategy to increase its portfolio to circa 12 
investments and brings the number of Tern's portfolio companies up to seven. 
 
                    Application for ordinary shares 
 
        Application will be made for the 3,783,784 new ordinary shares to be 
       admitted to AIM and it is expected that admission will take place and 
            trading in the new ordinary shares will commence on 17 May 2018. 
 
   In accordance with the Financial Conduct Authority's Disclosure, Guidance 
      and Transparency Rules, the Company confirms that on completion of the 
    Placing and following admission of the new ordinary shares to trading on 
   AIM, the enlarged issued share capital will comprise 225,384,580 Ordinary 
     Shares of 0.02p each. The Company does not hold any shares in Treasury. 
  Therefore the total number of voting rights in the Company is 225,384,580. 
          The above figure may be used by shareholders in the Company as the 
denominator for the calculations to determine if they are required to notify 
  their interest in, or a change to their interest in the Company, under the 
                    Disclosure Guidance and Transparency Rules. 
 
This announcement contains 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 Regulations. 
 
          - END - 
 
Enquiries 
 
Tern Plc                      via Redleaf Communications 
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] 
Elisabeth Cowell/Fiona Norman 
 
ISIN:          GB00BFPMV798 
Category Code: MSCH 
TIDM:          TERN 
LEI Code:      2138005F87SODHL9CQ36 
Sequence No.:  5531 
EQS News ID:   685051 
 
End of Announcement EQS News Service 
 
 

(END) Dow Jones Newswires

May 14, 2018 02:01 ET (06:01 GMT)