TIDMTERN
RNS Number : 1164W
Tern PLC
20 December 2021
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES
OF ARTICLE 7 OF EU REGULATION 596/2014 (WHICH FORMS PART OF
DOMESTIC UK LAW PURSUANT TO THE EUROPEAN UNION (WITHDRAWAL) ACT
2018). UPON THE PUBLICATION OF THIS ANNOUNCEMENT THIS INSIDE
INFORMATION IS NOW CONSIDERED TO BE WITHIN THE PUBLIC DOMAIN.
20 December 2021
Tern Plc
("Tern" or the "Company")
InVMA Fund Raise and Update
Tern Plc (AIM:TERN), the company focused on value creation from
Internet of Things ("IoT") technology businesses, is pleased to
announce that its portfolio company, InVMA Limited ("InVMA") has
completed a GBP2,125,000 equity fund raise (the "InVMA Fund
Raise"), including GBP1,925,000 from institutional investors Mercia
and Foresight and the founders, and GBP200,000 from Tern, at a
significant valuation uplift from the previous book valuation of
Tern's holding.
Highlights
-- GBP2,125,000 institutional funds raised by InVMA, led by fund
managers Foresight and Mercia, investing from the Midlands Engine
Investment Fund and the Northern Powerhouse Investment Fund
respectively
-- Tern has invested a further GBP200,000 in InVMA's equity
-- Simplified InVMA capital structure with all outstanding
secured convertible loan notes held by Tern and other shareholders
converted into InVMA equity
-- Tern's holding in InVMA's equity is now 36.8% with the
unaudited book valuation of Tern's holding, valued at the InVMA
Fund Raise valuation, increasing from GBP1.2 million as at 30 June
2021 to GBP2.2 million (after including the current investment of
GBP0.2 million)
-- InVMA is today being renamed Konektio
Commenting Al Sisto, CEO of Tern, said :
"We are very pleased that InVMA, now being renamed Konektio, has
secured a significant institutional investment in order to fund the
next phase of its growth. We welcome the Mercia and Foresight funds
as our partners, alongside the management and founders of Konektio,
to help the business achieve its significant potential.
"This fund raise is in line with our model to undertake
syndicated institutional raises to help drive the growth of our
portfolio companies, at incrementally higher values, prior to
seeking to ultimately exit at hopefully a significantly higher
value still. We believe that Konektio has a very bright future and
we look forward to reporting on its further progress in due
course."
InVMA Fund Raise
Prior to the InVMA Fund Raise, Tern had a holding of 50% in
InVMA and as at 30 June 2021, the date of Tern's last published
book valuation, this holding had an unaudited book valuation of
GBP1.2 million, including GBP175,000 of outstanding convertible
loans. Since 30 June 2021, Tern has provided a further GBP150,000
to InVMA in the form of convertible loan notes.
Post the InVMA Fund Raise, in which Tern has invested a further
GBP200,000, Tern's holding in InVMA is reduced to 36.8% (before any
dilution on exercise of any future InVMA employee share options),
but this holding now has an increased unaudited book valuation of
GBP2.2 million. Including the InVMA Fund Raise, Tern has invested
approximately GBP1.5 million in InVMA and this revised book
valuation represents an approximate 44% uplift to the amount
invested by Tern to date.
The capital structure of InVMA has also been simplified, with
all of the outstanding InVMA secured convertible loan notes held by
Tern and others being converted in line with their terms into
equity at a 20% discount to the InVMA Fund Raise's pre-money
valuation. InVMA is now valued in total at approximately GBP5.9
million on a post-money basis at the InVMA Fund Raise price and is
held 36.8% by Tern, 30.7% by the incoming institutional Investors
and 32.5% by its management and other shareholders.
InVMA Update
InVMA provides an Industrial IoT Software as a Service (SaaS)
platform to Original Equipment Manufacturers (OEMs) and aftermarket
customers, as well as the connected product market. The software
enables remote asset monitoring and management to drive
productivity improvements. The Company's primary product,
AssetMinder, is machine agnostic and allows manufacturers to
diagnose issues and proactively prescribe services plans,
ultimately reducing downtime and improving operational
efficiency.
InVMA has seen significant increase in sales of AssetMinder in
2021. This business growth has led to the recent recruitment of six
additional staff in the UK and the USA, accelerated product
development, an increased channel and partner sales network, a
material investment in new branding and the strategic decision to
open its first overseas office in North Carolina, in the USA. The
InVMA Fund Raise is designed to enable the company to have an
appropriate level of working capital to further scale its business
in 2022.
As part of its rebranding and positioning for the next stage of
its development, from today InVMA is changing its name to Konektio.
InVMA's name change to Konektio, reflects its ambition to be a
company that creates true connected Industrial IoT communication
and collaboration solutions for a wide range of businesses, taking
advantage of the industrial sector's desire for digital
transformation. This is achieved by rolling out its value-driven
SaaS product, AssetMinder, with considerable customisable features
to allow customers to choose what is right for them.
AssetMinder captures usage and performance data from smart
sensors, providing advanced insights to unlock data-driven
intelligence that optimises processes, condition monitoring,
machine uptime and profitability across a range of industries
including manufacturing, transportation, utilities, smart
infrastructure, and food processing. AssetMinder's technology is
already deployed across thousands of assets, providing valuable
insights and recommendations to people maintaining and managing
critical devices and infrastructure.
The business has launched a new website under the Konektio
branding which may be seen at www.konektio.com.
Peter Stephens, Chief Executive Officer of Konektio, commented:
"We are entering the exciting scale-up period of our business and
fully expect to significantly grow revenues over the coming months,
leveraging the power of our solutions and the reach of our channel
partners, including Dexis, ECA, PTC and u-blox. The institutional
investment secured, including further support from Tern, will help
us achieve these goals.
"I believe that the next industrial revolution is about
empowering people to do more with less and our rebrand to Konektio
reflects that. It cuts through the buzzwords and the terminology to
focus on what our technology does best."
Enquiries
Tern Plc via IFC Advisory
Al Sisto (CEO)
Sarah Payne (CFO)
Allenby Capital Limited Tel: 0203 328 5656
(Nominated Adviser and Broker)
David Worlidge / Alex Brearley (Corporate
Finance)
Matt Butlin / Kelly Gardiner (Sales and
Corporate Broking)
IFC Advisory Tel: 0203 934 6630
(Financial PR and IR) tern@investor-focus.co.uk
Tim Metcalfe
Graham Herring
Florence Chandler
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
MSCKKLFFFLLBFBB
(END) Dow Jones Newswires
December 20, 2021 02:00 ET (07:00 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
