Tern launches open offer to help Device Authority fundraise

(Alliance News) - Tern PLC shares fell on Friday after it announced an open offer to raise up to GBP384,408 before expenses.

The internet-of-things focused investor said it would issue up to 96.1 million open offer shares at an issue price of 0.40 pence each.

Under the open offer, all shareholders are entitled to subscribe for open offer shares on the basis of one open offer share for every seven ordinary shares hold.

The issue price represents a discount of 20% to the closing price of 0.50p on Thursday.

Shares in Tern were down 10% at 0.45p on Friday afternoon in London.

Tern expects that dealings in open offer shares will start on March 4. The open offer is not underwritten.

The proceeds of the offer will be used to participate in a short-term convertible loan note fundraise by Device Authority Ltd, which the board believes is crucial to preserve the value of Tern's holding in Device Authority.

The funding will also be used to maintain the costs of Tern's admission to the AIM market and participate in other "pay-to-play" or follow-on rounds that its direct portfolio companies may perform in future.

"The board unanimously believes the open offer is in the best interests of Shareholders," Tern added.

By Michael Hennessey, Alliance News reporter

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