30th Oct 2019 18:40
(Alliance News) - Investment company Tern PLC on Wednesday said that it has raised GBP1.75 million in gross proceeds through a subscription of 15.7 million new ordinary shares at 11.15 pence per new share.
Tern shares on Wednesday closed at 11.70p each in London, down 15%.
The funds raised will provide Tern with additional finance to continue implementing its strategy to acquire and maintain long-term, influential interests in high growth Internet of Things innovators and will also provide working capital.
"We are pleased to secure this new capital against a challenging equity capital markets backdrop. This, together with the announcement earlier today regarding FundamentalVR having secured additional funds which demonstrates a significant increase in the fair value of our holding, endorses our strategy to capitalise on the rapid growth of the IoT by investing in UK businesses which have the potential to change the future and become market leaders," said Tern Chief Executive Al Sisto.
"This fundraise will enable us to fund further new investments and continue to support our current portfolio, via our investment thesis to provide hands-on support and to create collaborative environments for talented well-motivated management teams. It will also enable us to maintain our positions of influence in our investee companies when there is follow-on funding with syndicates of investors," Sisto added.
Tern's virtual reality training and data analysis technology investee FVRVS Ltd, or FundamentalVR, has closed a GBP4.3 million Series A funding round. Following the funding round, Tern's shareholding in FundamentalVR will be 26.9% with a valuation of GBP3.0 million, representing a fair value increase of GBP600,000.
By Tapan Panchal; [email protected]
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