Statement re Update on Device Authority Fundraise
Post# of 301275
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 |
| 31 December Consolidated results | Actual | Actual | 6 months to 30 June 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 Al Sisto/Sarah Payne | via Redleaf |
| WH Ireland (NOMAD and joint broker) Mike Coe/Ed Allsopp | Tel: 0117 945 3470 |
| Whitman Howard (Joint broker) Nick Lovering/Francis North | Tel: 020 7659 1234 |
| Redleaf Communications David Ison/Elisabeth Cowell | Tel: 020 7382 4730 |
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