Tern PLC: Issue of further loan to Device Authority Limited (723583)
September 14 2018 - 2:02AM
UK Regulatory
Dow Jones received a payment from EQS/DGAP to publish this press
release.
Tern PLC (TERN)
Tern PLC: Issue of further loan to Device Authority Limited
14-Sep-2018 / 07:00 GMT/BST
Dissemination of a Regulatory Announcement, transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.
14 September 2018
Tern Plc (the "Company", or the "Group")
Issue of further loan to Device Authority Limited
Tern Plc (AIM: TERN), the investment company specialising in the Internet of
Things ("IoT"), announces that it has provided a further convertible secured
loan of US$525,000 to its portfolio company, Device Authority Limited
("DA"). The loan is repayable on 28 December 2018 (the "DA Loan"). Following
this investment, Tern's total convertible secured loan note position with DA
is US$1,700,867.
The total funds secured by DA through this facility from DA's existing
shareholders, including Tern, are US$730,516.
In providing this support, DA's shareholders, including Tern, are pleased
with the progress DA continues to make with its partners, including the
launch of a connected health solution with Thales and the ongoing
recognition of its value in the IoT security market. This was highlighted by
being recognised as the 2018 Emerging Star in the global IoT security market
by Quadrant Knowledge Solutions. DA also continues to improve KeyScaler, and
a recent new release introduces support for Comodo CA and IdenTrust (part of
HID Global). These new service connectors offer customers greater
flexibility and integration with Certificate Authorities ("CA") for enabling
automated certificate provisioning and management for IoT devices.
This fourth tranche of the convertible secured loan note accrues an interest
coupon of 5 per cent. per annum and is convertible automatically on
completion of an equity fundraising in DA of at least USD$2.5 million which
is completed before 28 December 2018 ("Qualifying Fundraising"). The
conversion will be into the most senior class of shares issued on the
Qualified Fundraising at the lowest fundraising price per share.
If a Qualifying Fundraising is not completed before 28 December 2018, but DA
is able to procure an exit, the providers of the loan can elect to either
receive 300% of the principal amount of the loan notes held by them in
addition to the accrued interest, or to convert the loan and accrued
interest into Class A Preference Shares of DA at a conversion price of
GBP0.036681585 per share.
Providers of the DA Loan have also been issued with 2.6 warrants for each $1
of loan notes subscribed for by them (rounded down to the nearest whole
number). Each warrant, which is exercisable at any time before 13 September
2025, provides each warrant holder with the right to subscribe for one Class
A Preference Share of DA for each warrant held at an exercise price of
GBP0.036681585 per share.
As part of this process, it has been agreed by all noteholders that all
previous convertible loan notes provided to DA have their maturity date
extended to 28 December 2018.
Al Sisto, CEO of Tern, said: "We are very pleased to be continuing our
support of Device Authority following the progress the company has been
making with its partners, including the recent product launch with Thales.
It is pleasing to see the company achieving recognition within the IoT
security market for the products and partnerships being formed and we look
forward to reporting on future developments."
This announcement contains inside information for the purposes of Article 7
of EU Regulation 596/2014
Enquiries
Tern Plc via Redleaf Communications
Al Sisto/Sarah Payne
Allenby Capital Tel: 020 3328 5656
(Nomad and joint broker)
David Worlidge/Alex Brearley
Whitman Howard Tel: 020 7659 1234
(Joint broker)
Nick Lovering/Christopher Furness
Redleaf Communications Tel: 020 3757 6880
Elisabeth Cowell/Fiona Norman
ISIN: GB00BFPMV798
Category Code: MSCH
TIDM: TERN
LEI Code: 2138005F87SODHL9CQ36
Sequence No.: 6014
EQS News ID: 723583
End of Announcement EQS News Service
(END) Dow Jones Newswires
September 14, 2018 02:02 ET (06:02 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