Tern Plc : Statement re Termination of Convertible Unsecured Loan Notes and Equity Fundraise

8 March 2018

Tern Plc (AIM: TERN)

Termination of Convertible Unsecured Loan Notes;
Equity Fundraise

Tern Plc (the ("Company"), the investment company specialising in the Internet of Things ("IoT"), is pleased to announce that it has terminated the Convertible Unsecured Loan Note facility announced on 30 November 2017 with immediate effect.

The Company is also pleased to announce that it has raised £650,000 before expenses through an unconditional placing of 25,490,196 new ordinary shares of 0.02p each at a price of 2.55p per ordinary share (the "Placing"), utilising the existing share authorities granted at the 2017 AGM.

The net proceeds of the Placing will be used primarily to provide additional finance to develop the businesses of the existing portfolio companies and invest in new portfolio companies.

Al Sisto, Chairman, commented on the Placing: "This Placing provides us with capital to continue delivering on our strategy without the Convertible Loan Note facility, which is pleasing. We look forward to highlighting the progress made by our portfolio companies which we believe will help to drive value in Tern going forward."

Application has been made for the 25,490,196 new ordinary shares to be admitted to AIM and it is expected that admission will take place and trading in the new ordinary shares will commence on 13 March 2018.

On completion of the Placing and following admission of the new ordinary shares, the enlarged issued share capital will be 212,141,336 Ordinary Shares of 0.02p each.  The Company does not hold any shares in Treasury.  The above figure may be used by shareholders as the denominator for the calculations to determine if they are required to notify their interest in, or a change to their interest in the Company, under the Disclosure Guidance and Transparency Rules.

This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014

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