Tern PLC: Issue of further convertible loan to Device Authority (880219)
September 26 2019 - 2:00AM
UK Regulatory
Tern PLC (TERN)
Tern PLC: Issue of further convertible loan to Device Authority
26-Sep-2019 / 07:00 GMT/BST
Dissemination of a Regulatory Announcement, transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.
26 September 2019
Tern Plc (the "Company", or the "Group")
Issue of further convertible loan to Device Authority
H1 2019 results shareholder call details
Tern Plc (AIM: TERN), the investment company specialising in the Internet of
Things ("IoT"), announces that, together with its co-investors, it has
committed a further convertible secured loan to its portfolio company,
Device Authority Limited ("DA"), which specialises in IoT security. The
total funds secured by DA through this loan are US$418,895, of which Tern
has contributed US$315,000. Tern holds 56.8% of DA's issued share capital.
The Board believes that DA's model is gaining traction and its commercial
activity is increasing. Following this investment, Tern's total convertible
secured loan note position with DA is US$2,730,867. The loan is repayable on
31 March 2020. 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 31 March 2020.
The loan note accrues an interest coupon of 5 per cent. per annum and is
convertible automatically on completion of an equity fundraising by DA of at
least US$2.5 million if completed before 31 March 2020 ("Qualifying
Fundraising"). The conversion will be into the most senior class of shares
issued in the Qualifying Fundraising at the lowest fundraising price per
share.
If a Qualifying Fundraising is not completed before 31 March 2020, but DA is
able to procure an exit for its shareholders, 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.
Tern, together with its co-investors, will also be issued with 2.6 warrants
for each US$1 of loan notes subscribed for by them (rounded down to the
nearest whole number). Each warrant, which is exercisable at any time before
[25] September 2027, 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.
Al Sisto, CEO of Tern, said: "DA boasts an industry recognised product, blue
chip clients and a board which has an intrinsic understanding of the IoT
security arena. We are pleased to provide this additional capital and look
forward to continuing to working closely with DA's management team as it
focuses on building on the recent momentum established."
H1 2019 results shareholder call
A shareholder conference call with accompanying presentation slides will be
held at 10:30 AM GMT on Monday 14 October 2019.
The call will be hosted by the Company's CEO, Al Sisto, who will discuss the
period under review and answer pre-submitted shareholder questions to the
extent that he is able to do so. No new material information or update on
trading will be provided.
Full details of how to join the call will be provided shortly but Tern
welcomes shareholder questions ahead of this via tern@newgatecomms.com. The
Company will be unable to accept questions submitted after 10:30 a.m. UK
time on 10 October 2019. Al Sisto will aim to answer as many pre-submitted
questions as possible during the call.
This announcement contains inside information for the purposes of Article 7
of EU Regulation 596/2014
Enquiries
Tern Plc via Newgate Communications
Al Sisto/Sarah Payne
Allenby Capital Tel: 020 3328 5656
(Nomad and joint broker)
David Worlidge/Alex Brearley
Whitman Howard Tel: 020 7659 1234
(Joint broker)
Nick Lovering/Christopher Furness
Newgate Communications Tel: 020 3757 6880
Elisabeth Cowell/Megan Kovach
ISIN: GB00BFPMV798
Category Code: MSCL
TIDM: TERN
LEI Code: 2138005F87SODHL9CQ36
Sequence No.: 21341
EQS News ID: 880219
End of Announcement EQS News Service
(END) Dow Jones Newswires
September 26, 2019 02:00 ET (06:00 GMT)
Tern (LSE:TERN)
Historical Stock Chart
From Mar 2024 to Apr 2024
Tern (LSE:TERN)
Historical Stock Chart
From Apr 2023 to Apr 2024