REG - Tern PLC - Investment in Sure Ventures plc

TernAnnouncement

02/01/2025 07:00

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RNS Number : 8192R  Tern PLC  02 January 2025

2 January 2025

Tern Plc

("Tern" or the "Company")

Investment in Sure Ventures plc

Tern Plc (AIM:TERN), the investment company specialising in supporting high
growth, early-stage, disruptive Internet of Things ("IoT") technology
businesses, announces that the Company has invested £175,000 of its cash
balance in new ordinary shares in Sure Ventures plc ("Sure Ventures"), which
are to be issued as part of a placing to raise a total of approximately
£275,000 undertaken by Sure Ventures (the "Placing").

For its cash consideration of £175,000, Tern will acquire 213,414 new
ordinary shares in Sure Ventures at a price of 82 pence per new ordinary share
(the "Placing Price").  The Placing Price equates to the mid-market closing
price of Sure Ventures' ordinary shares on 31 December 2024 and Tern's
participation in the Placing will provide Tern with an approximate 2.7%
holding in Sure Ventures on admission of the Placing shares to trading on the
London Stock Exchange on or around 8 January 2025.  Tern will have no
restrictions on its ability to trade the Sure Ventures shares acquired in the
Placing.

Sure Ventures is a venture capital fund which invests in early-stage software
companies in the rapidly growing technology areas of Artificial Intelligence
(AI), Augmented Reality (AR), Virtual Reality (VR) and IoT.  It is listed on
the Specialist Fund Segment of the London Stock Exchange with a reported net
asset value per share, as at 30 September 2024, of 139 pence and a market
capitalisation of £6.27 million, as at 31 December 2024 prior to the
announcement of the Placing.  Sure Ventures' unaudited interim report and
financial statements announced on 5 December 2024 reported an unaudited loss
before taxation and after finance costs for the six months ended 30 September
2024 of £181,746 and unaudited total net assets as at 30 September 2024 of
£10,614,533.

Sure Ventures' principal investments are a 25.9% interest in Sure Valley
Ventures Fund ("SVV1") and an approximate 6% interest in Sure Valley
Enterprise Capital Fund ("SVV2").  Tern already has a direct 5.9% interest in
SVV2.

The Tern directors believe that this investment in Sure Ventures will provide
Tern with the following benefits:

·    Exposure to a complimentary portfolio of specialist technology
businesses at an attractive discount to Sure Ventures' current net asset
value, in particular its interest in SVV1's portfolio.

·    Provide Tern with increased diversity of exposure to specialist
technology businesses at different stages of development to Tern's current key
portfolio companies, Device Authority, FundamentalVR and Talking Medicines.

·    Further enhance Tern's existing relationship with SVV2 and the
ability to leverage potential synergies between Tern's portfolio companies and
those held by SVV1 and SVV2.

·    Potentially provide income to Tern from any distributions undertaken
by Sure Ventures following SVV1 and SVV2 portfolio exits, including liquidity
events already announced by Sure Ventures.

Online Investor Presentation and Q&A Session

As previously announced, the Company will be hosting an online presentation
and Q&A session at 5.30 p.m. GMT on Thursday 9 January 2025.

Presenting will be members of Tern's management team and management from
Tern's portfolio companies Device Authority, FundamentalVR and Talking
Medicines, together with a representative of Vortex IQ, a SVV2 portfolio
company.  This session is open to all existing and prospective
shareholders.  Those who wish to attend should register via the following
link where they will be provided with access details:

https://us02web.zoom.us/webinar/register/WN_95cYxDkWQPqzY9IK-nLoUQ
(https://us02web.zoom.us/webinar/register/WN_95cYxDkWQPqzY9IK-nLoUQ)

Participants will have the opportunity to submit questions during the session,
but questions are welcomed in advance and may be submitted prior to 3 p.m. GMT
on 8 January 2025 to: tern@investor-focus.co.uk
(mailto:tern@investor-focus.co.uk) .

 
Enquiries
 
 Tern Plc                                                       via IFC Advisory

 Ian Ritchie (Chairman)

 Allenby Capital Limited                                        Tel: 0203 328 5656

 (Nominated Adviser and Broker)

 Alex Brearley / Dan Dearden-Williams (Corporate Finance)

 Kelly Gardiner / Guy McDougall (Sales and Corporate Broking)

 IFC Advisory                                                   Tel: 0203 934 6630

 (Financial PR and IR)

 Tim Metcalfe

 Graham Herring

 Florence Chandler

 

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