REG - Tern PLC - Konektio Fundraise

TernAnnouncement

26/05/2023 07:00

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RNS Number : 7306A  Tern PLC  26 May 2023

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.

26 May 2023

 

Tern Plc

("Tern" or the "Company")

 

Konektio Fundraise

 

Tern Plc (AIM:TERN), the investment company specialising in supporting high
growth, early-stage, disruptive Internet of Things ("IoT") technology
businesses, announces that its portfolio company, InVMA Limited, which trades
as Konektio ("Konektio") has agreed a £2.5 million equity fundraise, to be
completed in two tranches.  The first tranche of £1.2 million has completed
(the "Konektio First Tranche") and the second tranche of £1.3 million is due
for completion in Q4 2023 (the "Konektio Second Tranche").

 

Tern has invested £100,000 in the Konektio First Tranche, with the remainder
provided by Konektio's other institutional shareholders, being Mercia and
Foresight.  Prior to the Konektio First Tranche, Tern had a shareholding of
39.9% in Konektio with an unaudited book valuation of £1.0 million.  Post
the Konektio First Tranche, Tern's shareholding in Konektio has reduced to 28%
(before any dilution on exercise of any Konektio employee share options) and
Tern's shareholding now has an unaudited book valuation, at the Konektio First
Tranche price, of £0.9 million.

 

Including its participation in the Konektio First Tranche, Tern has, to date,
invested approximately £2.3 million in Konektio.  The pre-new money
valuation for the Konektio First Tranche is approximately equivalent to the
pre-money valuation for the previous Konektio fundraise announced on 25 April
2023, with Konektio having increased its employee share option pool.

 

Tern has committed to invest a minimum of £0.28 million in the Konektio
Second Tranche, with an option, at its sole discretion, to increase its
investment amount up to £0.4 million.  The price of the Konektio Second
Tranche will be determined as at 30 September 2023 and will be based on the
annualised revenues of Konektio at that time, capped at a pre money valuation
of £6.0 million.  Should Tern not fulfil its commitment to invest a minimum
of £0.28 million in the Konektio Second Tranche, 75% of Tern's holding in
Konektio will be transferred to a valueless class of Konektio deferred shares.

 

About Konektio

 

Konektio 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.  Konektio'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.  According to the latest filed
financial statements for Konektio, for the 12 month period ended 31 December
2021, the business recorded an increase in retained unaudited losses of £0.4
million and at that date had unaudited net assets of approximately £1.8
million.

 

Enquiries

 

 Tern Plc                                                     via IFC Advisory

 Al Sisto (CEO)

 Sarah Payne (CFO)

 Allenby Capital Limited                                      Tel: 0203 328 5656

 (Nominated Adviser and Broker)

 Alex Brearley / Dan Dearden-Williams (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 (mailto:tern@investor-focus.co.uk)

 Tim Metcalfe

 Graham Herring

 Florence Chandler

 

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