Fundraising to facilitate new investment
Tern has raised £1.5m gross proceeds through a subscription of 17.6m new shares at 8.5p per share, a 19% discount to the 10.5p last closing price. The funds raised are intended to be used to facilitate new investment to expand Tern’s portfolio, but also enable prospective follow-on investments in existing portfolio companies. The net proceeds add to Tern’s £0.8m cash position at end-June 2020. The directors report a strong new investment pipeline for Tern and anticipate securing at least one new investment before the year-end. CEO Al Sisto believes that Tern’s investment thesis to provide an active platform for early-stage, high potential IoT businesses has been validated and sees an exciting opportunity to build out the portfolio with high growth companies, which will also further de-risk the business.