(Alliance News) - Tern PLC on Thursday said it had completed the retail offer part of its fundraise as it seeks a strong negotiating position in its investee companies .
The company raised gross proceeds of about GBP300,000 at an issue price of 7.5 pence per share from its retail offer. The subscription, completed separately, raised GBP1.3 million from the placing of 17 million shares at the same price. The subscription and retail offer combined raised GBP1.6 million.
Shares in the investor focused on the internet of things slumped 9.1% to 7.50 pence each in London on Thursday morning.
Allenby Capital Ltd was broker to the company in relation to the subscription. The retail offer was managed by PrimaryBid. It is expected that trading in the shares will commence on October 12.
Chief Executive Officer Al Sisto said: "If we are to protect and maximise shareholder value it is vitally important that we have as strong a negotiating position as possible when competing with often much larger private equity providers who wish to now secure a position in our companies at the maximum economic advantage to themselves and to the detriment of Tern and its shareholders.
"The net proceeds of the fundraise includes capital that we can deploy to provide further funding for Tern's portfolio companies in their future syndicated fundraises, both protecting Tern's position and providing them with the growth capital they require."
By Chris Dorrell; chrisdorrell@alliancenews.com
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Tern (TERN)