Hold quite a few shares here as previously disclosed. One of these shares that normal metrics will not pick up and can be very volatile as result of trading and shorting. Of the shares in issue it is estimated that the vast majority are in reasonably safe hands. Down side of this is that the small float remaining can be manipulated and is exposed to buying / selling in any volume.
Reason for this post is to share a summary written by another large shareholder. DYOR I know this is a share that in the past has engendered polarised views. In my opinion has a cracking future. Key two investee companies look like gaining real traction : Device Authority and FundamentalVR. Tern are well funded and very canny with the money they have. They have a good quality management team that are VERY experienced in the technology / IOT field. Real value will come on investee exits but the two mentioned look like could be blockbusters and not that far away.
Anyway here is the summary (please excuse the lack of formatting) :
Tern Investment Case
Nov 29th 2018-10-05
Tern PLC https://www.ternplc.com
237 million shares in issue:
Share Price 18.5p giving a Market Capitalisation of approx. £44 million
£2 million in cash as of Oct 31st 2018. Annual Tern expenses £900k
Tern invests in primarily UK early stage tech companies operating in the rapidly growing markets of IOT, Cloud and VR/AR, works on their tech, their management teams and their go to market strategy and then seeks an exit by selling those companies into international markets. Tern refer to the Stage where they are ready to sell an investee company as Stage 3.
The valuations of UK tech companies are typically significantly lower than would be the case if they were based in the US or many other countries. This allows Tern to pick up disruptive technologies in the UK at low valuations.
Investments to Date
£5.5 million in Device Authority for a 42% stake ( DA management get first 25% of any exit )
£1.9 million in Fundamental FVR for a 35% stake
£1.0 million in InVMA for a 50% stake
£0.078 million in Wyld Technologies for a 90% stake.
Executive Summary of potential:
Using information available eg market size, pricing, known product launches etc. Please note that with tech companies it is…
