Tern Plc Tern Plc : Statement Re Issue Of Loan To Device Authority
March 01 2018 - 2:00AM
UK Regulatory
TIDMTERN
1 March 2018
Tern Plc (the "Company", or the "Group")
Issue of Loan to Device Authority
Tern Plc (AIM: TERN), the investment company specialising in the
Internet of Things ("IoT"), announces that it has paid $360,581 to its
portfolio company, Device Authority ("DA"), representing the second
tranche of a convertible secured loan announced on 28 December 2017.
Following this payment, Tern's total convertible loan note position with
DA is $871,913.
The total funds secured by DA through this second facility are
$1,688,684 from DA's existing shareholders, including Tern.
In providing this support, DA's shareholders, including Tern, are
pleased by the progress DA is making to expand its pipeline of
opportunities. This is evidenced by the recent integration of DA's
KeyScaler IoT security platform into AMD's new processor which helps AMD
customers apply and advance the use of internet of things (IoT)
principles to a growing number of applications such as industrial
systems, smart cities, inventory management, medical displays, and point
of sale.
Device Authority's KeyScaler platform adds value to AMD's IoT solutions
by delivering secure device provisioning, policy-based credential
management and end-to-end data security for their gateways.
The first and second tranches of the convertible loan note (together the
DA Loan") accrue an interest coupon of 5% and are convertible
automatically on an equity fundraising in DA of at least USD$2.5 million
to be completed before 30 June 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 the Qualifying Fundraising is not completed before 30 June 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, 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 shall also be issued 2.6 warrants ("Warrants")
for each $1 of Loan Notes subscribed for by them (rounded down to the
nearest whole number). The Warrants shall have a term of seven years and
be exercisable from the earlier of (i) immediately prior to an exit;
(ii) immediately following completion of a Qualifying Fundraising; or
(iii) immediately following completion of the second tranche and give
each Warrant holder the right to subscribe for one Class A Preference
Share of DA for each Warrant held by them at an exercise price of
GBP0.036681585 per share.
Al Sisto, CEO of Tern, said:
"As a significant investor, we have long been persuaded of the quality
of the Device Authority management team and product suite, evidenced by
our decision to participate in this convertible loan note. DA is helping
its customers achieve their strategic objectives in IoT and to increase
the pace of adoption as companies continue to migrate to cloud first
technologies and recognise the need to protect identities and data,
wherever it is accessed."
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
WH Ireland Tel: 0117 945 3470
(NOMAD and joint broker)
Mike Coe/Ed Allsopp
Whitman Howard Tel: 020 7659 1234
(Joint broker)
Nick Lovering/Francis North
Redleaf Communications Tel: 020 3757 6880
Elisabeth Cowell/ Fiona Norman
This announcement is distributed by Nasdaq Corporate Solutions on behalf
of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the information
contained therein.
Source: Tern Plc via Globenewswire
(END) Dow Jones Newswires
March 01, 2018 02:00 ET (07:00 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
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