26th May 2023 10:31
(Alliance News) - Tern PLC on Friday said that its portfolio company, InVMA Ltd, has agreed a GBP2.5 million fundraise, which will be completed in two tranches.
Tern is an investment company specialising in supporting early-stage internet of things technology businesses. Its portfolio company, InVMA, trades as Konektio, and provides an industrial IoT software-as-a-service platform to original equipment manufacturers.
Konektio's fundraise has two tranches, the first of which was for GBP1.2 million and has been completed. Tern invested GBP100,000 in the first tranche, with the remainder provided by Konektio's other shareholders.
Prior to this, Tern had a shareholding of 39.9% in Konektio, with an unaudited book valuation of GBP1.0 million. Following the completion of the first tranche, it now holds a 28% interest in the portfolio company, with a valuation of GBP900,000.
The second tranche of the fundraise is for GPB1.3 million. It is expected to complete in the final quarter of this year.
Tern has committed to investing a minimum of GBP280,000 in the second tranche, with the option to up this number to GBP400,000. Should Tern fail to meet this commitment, 75% of its holding in Konetkio will be transferred to a valueless class of Konektio deferred shares.
Tern shares were trading 11% lower at 3.64 pence each in London on Friday morning.
By Holly Beveridge, Alliance News reporter
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