REG - Tern PLC - Subscription to raise £1.5 million

TernAnnouncement

08/12/2022 07:00

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RNS Number : 9830I  Tern PLC  08 December 2022

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8 December 2022

 

Tern Plc

("Tern" or the "Company")

 

Subscription to raise £1.5 million

 

Tern Plc (AIM:TERN), the company focused on value creation from Internet of
Things ("IoT") technology businesses, announces that it has raised £1.5
million, before expenses, through a subscription for 15,000,000 new ordinary
shares ("Ordinary Shares") of 0.02p each in the Company (the "Subscription
Shares") at a price of 10 pence per new Ordinary Share (the "Issue Price"),
conditional upon admission to AIM (the "Subscription").

 

The Subscription Shares will represent approximately 3.86 per cent. of the
Company's issued share capital as enlarged by the Subscription.  The Issue
Price represents a discount of approximately 14.9 per cent. to the mid-market
closing price on AIM of 11.75 pence per Ordinary Share on 7 December 2022,
being the latest practicable business day prior to the publication of this
announcement.

 

The Subscription has been undertaken with a single UK-based FCA regulated
institutional investment fund management firm who have subscribed on the
understanding that Tern will use part of the net proceeds to repay the
outstanding £400,000 loan facility and retain the benefit of the Wyld
Network's AB shares, currently subject to a call option, as detailed below.
The subscriber has additionally agreed to work with the Company to assist in
maximising shareholder value from Tern's existing investments.

 

The Directors intend that the net proceeds of the Subscription will be used
to:

·    provide Tern with a stronger negotiating position and with funding
for follow-on investment opportunities in future syndicated fundraises
performed by Tern's existing portfolio companies;

·    to repay the £400,000 short term loan facility and applicable
interest entered into by the Company in July 2022.  On repayment of the loan
it is intended that the facility provider's call option on 320,455 shares in
Wyld Networks AB will be cancelled, enabling the Company to continue to
benefit from this holding; and

·    for general corporate purposes.

 

Admission and Total Voting Rights

 

Application will be made for the Subscription Shares to be admitted to AIM
("Admission") and it is expected that Admission will take place and trading in
the Subscription Shares will commence on or about 15 December 2022.

 

In accordance with the Financial Conduct Authority's Disclosure, Guidance and
Transparency Rules, the Company confirms that following Admission, the
Company's enlarged issued ordinary share capital will comprise 388,571,510
Ordinary Shares. The Company does not hold any shares in Treasury.
 Therefore, from Admission, the total number of voting rights in the Company
will be 388,571,510 and this figure may be used by shareholders in the Company
as the denominator for the calculations to determine if they are required to
notify their interest in, or a change to their interest in the Company, under
the Disclosure Guidance and Transparency Rules.

 

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 (mailto:tern@investor-focus.co.uk)

 Tim Metcalfe

 Graham Herring

 Florence Chandler

 

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