IN BRIEF: Tern invests in Device Authority in convertible loan notes
Tern PLC - London-based 'internet-of-things' focused investor - Announces that it has invested USD280,000 in new unsecured convertible loan notes issued by Device Authority Ltd funded from the proceeds of the recent open offer. The CLNs carry an interest rate of 8% per annum and the CLNs' principal amount and accrued interest are convertible on either a change of control of Device Authority, or a fundraising of at least USD5 million undertaken by Device Authority, or, if neither have occurred on June 30 2027. On a change of control, the CLNs are convertible at a three times multiple to their face value and the value of accrued interest. On a qualifying fundraise the CLNs are convertible at a 25% discount to the qualifying fundraise price. As at June 30 2025, the date of Tern's last published book valuation, Tern's holding in Device Authority had a total unaudited book value of GBP4.0 million. Following the issue of the CLN, Tern's holding in Device Authority will be unchanged and Tern will continue to hold around 25% of Device Authority's equity, although now with a CLN holding of around GBP210,000. As part of the same overall funding round, Device Authority is in the process of raising up to USD1.6 million of funding from existing investors through the issue of CLNs on the same terms. Jane McCracken, interim non-executive chair of Tern, says: "We remain very excited by the potential of Device Authority and our other portfolio companies, and are focused on realising value from them as soon as is appropriate." Read More