Statement re Potential new investment and Proposed

11 August 2017

Tern Plc (AIM: TERN)

Potential new investment Proposed fundraising for Device Authority in the United States

Tern Plc (AIM:TERN), the investment company specialising in Internet of Things, is pleased to announce that it has signed a term sheet to invest in InVMA Limited ("InVMA").   

InVMA is an established and growing player in the market for IoT enablement.  InVMA designs, builds and supports secure, innovative solutions that seamlessly connect devices, applications, systems and smart products to create an Internet of Things that delivers real business value and competitive advantage. It is also a key strategic partner for Device Authority Limited and it is expected that InVMA's entry into the Tern portfolio will be beneficial to that relationship.

The anticipated completion date of the InVMA investment is in August 2017 and management regards the negotiations to be at an advanced stage and that progress towards completion is satisfactory and on-track. However, there can be no certainty that the InVMA investment will complete, nor as to its final terms. A further announcement regarding the InVMA investment will be made in due course.

Proposed fundraising for Device Authority Ltd

Tern is also pleased to announce that its investee company, Device Authority Limited, has signed a term sheet with US Capital Partners (www.uscapitalpartners.net) to raise new equity through a private placement offering. The minimum subscription from the private placement will be $2.5 million at first close which is expected to be in September 2017. The fundraising attributes a pre-money valuation to Device Authority of $36m, or $0.75 per share, up from $23m or $0.47 at the last equity issue.  It is anticipated that an engagement letter will be signed by the end of August 2017 and the fund raising will close 120 days later.

Al Sisto, CEO of Tern plc, said:

"Tern's goal is to be a leading U.K. IoT investment company with a portfolio of world class companies whose products help secure, enable and analyse applications and devices, to securely connect, inform, and provide continuous value to the enterprises and governments who use them."

"This potential new investment will enable us to strengthen our portfolio with an exciting opportunity that we firmly believe has the potential to deliver significant returns for our shareholders".

This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014

Enquiries