9th Mar 2020 14:57
(Alliance News) - Tern PLC on Monday said it has raised gross proceeds of GBP800,000 through a subscription of 13.3 million shares at 6 pence each.
Shares in the internet of things investment company were trading 27% lower at 5.63p each on Monday afternoon in London.
Non-Executive Chair Ian Ritchie subscribed for 333,333 shares for a total of GBP20,000. Chief Executive Al Sisto subscribed for 733,333 shares for a total amount of GBP44,000. Finance Director Sarah Payne subscribed for 100,000 shares, totalling GBP6,000.
Proceeds realised from the fundraise will be used to facilitate a new investment, strengthen the company's balance sheet, and for general working capital purposes.
"With the worldwide number of IoT-connected devices projected in July 2019 by McKinsey & Company to increase almost threefold from 2018 to 43 billion by 2023, these funds will enable us to continue to provide funding to pioneers in this exciting and growing sector, said Chief Executive Al Sisto.
"The recent Seal transaction and the successful 2019 Series A funding round in October demonstrate the significant value that can be delivered by investing early in IoT companies, as well as our ability to identify commercial businesses in this high growth industry," he added.
Following admission, Tern's issued share capital will comprise 283.4 million shares.
Separately, the company said that the maturity date of all convertible loan notes provided to its portfolio company Device Authority will be extended to September 30, 2020. The outstanding loan from Tern to Device Authority currently stands at USD3.6 million.
By Ife Taiwo; [email protected]
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